Wheaton Precious Metals Announces Closing of New Precious Metals Purchase Agreement with First Majestic on the San Dimas Mine and Early Warning Report Filed

Wheaton Precious Metals Announces Closing of New Precious Metals Purchase Agreement with First Majestic on the San Dimas Mine and Early Warning Report Filed

PR Newswire

VANCOUVER, British Columbia, May 11, 2018

VANCOUVER, British Columbia, May 11, 2018 /PRNewswire/ --

TSX: WPM
NYSE: WPM

Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") is pleased to announce that the new precious metals purchase agreement with First Majestic Silver Corp ("First Majestic") (the "First Majestic PMPA") on the San Dimas mine has now closed following the completion of the plan of arrangement (the "Arrangement") whereby First Majestic has acquired all of the outstanding common shares of Primero Mining Corp. ("Primero").

As previously announced on January 12, 2018, in connection with the Arrangement, Wheaton Precious Metals International Ltd. ("Wheaton International") agreed to terminate the existing San Dimas silver purchase agreement with Primero (the "Existing SPA") and enter into the First Majestic PMPA. The Arrangement was completed on May 10, 2018.

First Majestic PMPA Terms:

For more information on the First Majestic PMPA, please refer to Wheaton's news release dated January 12, 2018.

As part of the transaction and in addition to the new stream, First Majestic issued 20,914,590 First Majestic common shares to Wheaton International (the "First Majestic Shares").

"The acquisition of Primero by First Majestic marks the start of a new chapter for the San Dimas mine," said Randy Smallwood, President and Chief Executive Officer of Wheaton. "We believe First Majestic has an excellent opportunity to unlock the significant exploration and operational potential of San Dimas, including the silver-rich areas. We are excited to now be the largest shareholder of First Majestic as they re-establish San Dimas as one of the premier precious metals mines in Mexico."

In connection with the Arrangement, Wheaton International released the guarantee previously provided by Goldcorp Inc. ("Goldcorp") under the Existing SPA in consideration for a payment of US$10 million from Goldcorp to Wheaton International. Furthermore, the US$0.50 per ounce penalty for each ounce less than 215 million ounces delivered by 2031 has been extinguished.

In addition, Wheaton also announces that it has terminated the guarantee previously provided by Wheaton and certain of its subsidiaries under Primero's existing revolving credit facility.

The First Majestic Shares represent approximately 11% of First Majestic's current issued and outstanding shares and have been issued pursuant to exemptions from prospectus requirements. The First Majestic Shares are subject to Canadian, United States and contractual resale restrictions, including a six month hold period (subject to certain exceptions) with volume selling restrictions thereafter. The First Majestic Shares are currently being held for investment purposes, however Wheaton may from time to time in the future increase or decrease its ownership, control or direction over securities of First Majestic, through market transactions, private agreements or otherwise. 

Wheaton is continued under the laws of Ontario and Wheaton's head office is located at 3500 - 1021 West Hastings Street, Vancouver, British Columbia, V6E 0C3 and its registered office is located at Suite 2100, 40 King Street West, Toronto, Ontario, M5H 3C2. First Majestic's head office is located at 1800 - 925 West Georgia Street, Vancouver, British Columbia V6C 3L2. A copy of the Early Warning Report to which this press release relates can be obtained from Patrick Drouin, Senior Vice President, Investor Relations at Wheaton, at 1-844-288-9878 or info@wheatonpm.com or on the SEDAR profile of First Majestic at http://www.sedar.com.

Advisors and Counsel
BMO Capital Markets acted as financial advisor and Cassels Brock & Blackwell LLP and Goodmans LLP acted as legal counsel to Wheaton.

CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS 

The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to:

Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton Precious Metals to be materially different from those expressed or implied by such forward-looking statements, including but not limited to:

Forward-looking statements are based on assumptions management currently believes to be reasonable, including but not limited to:

Although Wheaton Precious Metals has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton Precious Metals. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing investors with information to assist them in understanding Wheaton Precious Metals' expected financial and operational performance and may not be appropriate for other purposes. Any forward looking statement speaks only as of the date on which it is made. Wheaton Precious Metals does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.

Patrick Drouin, Senior Vice President, Investor Relations, Wheaton Precious Metals Corp., Tel: 1-844-288-9878, Email: info@wheatonpm.com , Website: http://www.wheatonpm.com 

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