Allied Gold Corporation has received the first construction payment under a $175-million streaming agreement with Wheaton Precious Metals, signed earlier this month.
Under the terms of the streaming agreement, Allied will receive an aggregate $175-million upfront cash payment – payable in four equal tranches – to support the funding of its growth strategy, which is underpinned by the development of its low-cost and fully permitted Kurmuk gold project, in Ethiopia.
Allied is targeting initial production of about 270 000 oz of gold in the first five years of production at Kurmuk.
Further, Allied has also entered into a $75-million gold prepaid forward arrangement with select lenders – the National Bank of Canada, Macquarie Bank and Citibank.
Under the terms of this agreement, the lenders will buy 2 082 oz of gold a month from Allied over a 12-month period starting in October 2026.
Allied says the gold prepay arrangement is a low cost of capital financing and represents the latest component of a comprehensive financial package for the construction and development of the Kurmuk project.