Finance > Project-finance

Vale pulls trigger on C$2B Voisey's Bay underground expansion

Diversified miner Vale has signed two cobalt streaming deals worth US$690 million to help fund development of the Voisey’s Bay underground expansion (VBME), in Newfoundland and Labrador, for which it has made a positive development decision.

Henry Lazenby in Vancouver

Finance > Project-finance

Vale pulls trigger on C$2B Voisey's Bay underground expansion

Diversified miner Vale has signed two cobalt streaming deals worth US$690 million to help fund development of the Voisey’s Bay underground expansion (VBME), in Newfoundland and Labrador, for which it has made a positive development decision.

Henry Lazenby in Vancouver

Vale pulls trigger on C$2B Voisey's Bay underground expansion

Voisey's Bay underground set to fly on streaming deals

In what is the first diversification from its traditionally silver and gold-focused streaming portfolio, Wheaton Precious Metals and junior Cobalt 27 Capital will buy 75% of the finished cobalt to be delivered from January 1, 2021, which includes the ramp-down from the existing Voisey's Bay mine and from the VBME, for a total upfront payment of US$690 million plus further production payments of 20%, on average, of cobalt prices on delivery.