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TSX-V-listed Spanish Mountain Gold has entered into a royalty agreement with Canadian streaming company Wheaton Precious Metals Corporation whereby Wheaton will acquire a 1.5% net smelter return royalty on gold and silver produced from the Spanish Mountain Gold project for aggregate cash proceeds of $55-million.

The proceeds will be paid in three instalments.

Spanish Mountain president and CEO Peter Mah says entering into a definitive financing agreement propels the project feasibility study forward, which the company aims to complete in 18 months to enable a build decision in 2028.

"This financing secures the company's vision and strategy as an emerging precious metals developer in the Tier 1 Cariboo District, in British Columbia," Mah explains.

Wheaton president and CEO Haytham Hodaly comments the Spanish Mountain Gold project is within a jurisdiction that the company knows well and the project's scale and long-term potential aligns with its own disciplined approach to growth in established mining jurisdictions.

The first $22.5-million instalment is expected in the coming weeks, with the second instalment of $12.5-million being due once Spanish Mountain completes 60 000 m of drilling on the project.

The third instalment of $20-million is payable to Spanish Mountain once the project garners government approval for construction, development and operation.