en.Wedoany.com Reported - Australian mining company KGL Resources has received a $16 million (A$22.7 million) payment from Wheaton Precious Metals under a precious metals purchase agreement, marking a key milestone in the development of the Jervois copper project in the Northern Territory.
The agreement, announced in April this year, includes $275 million in upfront consideration and an additional $25 million in contingent cost overrun financing. The upfront funding comprises a $32 million early deposit (payable in two installments) and an additional $243 million, to be provided in four tranches based on project construction expenditure milestones.
Following this payment, KGL's available cash position has increased from approximately $5.5 million as of May 31, 2026, to about $28 million.
KGL Resources CEO Sam Strohmayr said this is a significant milestone for the company, enabling it to continue advancing the early engineering components of the project, maintain project momentum, and move closer to a final investment decision.
Early engineering activities include water supply infrastructure, process plant engineering, long-lead equipment, initial construction camps, and selected service facilities.
The second installment of the early deposit is scheduled for late September 2026, subject to customary conditions, including Wheaton obtaining approval from the Foreign Investment Review Board and verification of early engineering expenditures.
Under the agreement, the remaining $243 million is expected to be drawn in four equal tranches during the construction period. Access to the first tranche requires meeting several conditions, including engaging an open-pit mining contractor, signing major development and construction contracts, ongoing sustainability reporting, maintaining Foreign Investment Review Board approval, and securing the remaining capital required for project completion.
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