(Corrects to Montana from Wyoming in first paragraph)
July 16 (Reuters) - Wheaton Precious Metals Corp, the world’s largest silver streaming company, said on Monday it would buy all of the gold assets from Sibanye Gold Limited’s Stillwater and East Boulder mines in Monatana.
The company said it will make an advanced payment of $500 million to Sibanye-Stillwater as part of the deal, which also includes some of the miner’s palladium assets.
Vancouver, Canada-based Wheaton said it will make ongoing payments equal to 18 percent of spot gold and palladium prices until it reaches the $500 million advanced payment target. Thereafter, Wheaton will boost the payment to 22 percent for the delivery of the precious metals.
Metal streaming firms sign deals with mining companies to buy all or part of their production at a predetermined price.
Wheaton said it will buy all of Stillwater’s gold production for the life of the mine and receive 4.5 percent of total palladium production initially.
Spot gold prices were up 0.2 percent at $1,243.72 on Monday.
Wheaton’s announcement comes days after it signed a similar deal with Brazil’s Vale to buy cobalt mined after 2021 as a by-product from Vale’s mine in Canada’s northern Labrador region. (Reporting by Laharee Chatterjee in Bengaluru; Editing by Beranrd Orr)