Adventus Mining and Salazar Resources have secured $235.5m in funding with Wheaton Precious Metals and Singapore-based commodity trading company Trafigura to build the Curipamba copper/gold project in Ecuador.

Alliance Metals International (AMI), a subsidiary of joint venture Salazar Holdings, and Adventus Mining entered a precious metals purchase agreement with Wheaton Precious Metals International Limited, part of Wheaton Precious Metals.

Wheaton agreed to pay a total upfront cash payment of $175.5m to AMI, of which $13m is payable on an early deposit basis to fund pre-construction activities at the Curipamba Project.

The remainder is payable in four instalments during the project construction phase.

In exchange, Wheaton will receive 50% of payable gold production from the Curipamba Project. This will be reduced to 33% for the life of mine once 150Koz of refined gold have been delivered.

Wheaton will also receive 75% of the payable silver output from the project, which will then be reduced to 50% for the life of mine once 4.6Moz of refined silver have been delivered.

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Furthermore, Adventus Mining signed a binding engagement for an offtake financing agreement (OFA) with Trafigura pertaining to the Curipamba Project, which comprises seven mineral concessions and includes the advanced high-grade copper-gold El Domo deposit.

Furthermore, Trafigura entered an OFA with Adventus Mining for a $45m facility having a five-year term, pertaining to the project.

The OFA includes an offtake agreement that provides Trafigura with certain concentrate offtake rights for production from the El Domo deposit over the life of mine.

Trafigura can make a $5m payment on an early deposit basis to fund pre-construction activities at the Curipamba Project.

The remainder of the cash consideration is payable in tranches during the project construction phase.

Adventus Mining Christian Kargl-Simard President and CEO said: “Based on the projected revenues payable to Wheaton, the potential read-through value of Curipamba is significantly higher than $1bn.

“To our partners and many stakeholders in Ecuador, Adventus Mining and Salazar are pleased to secure these significant long-term commitments from two of the largest and most respected metals and mining groups globally, which highlight both the confidence in the Curipamba Project becoming one of the next modern copper mines and in the growing responsible mining sector of Ecuador.”