KGL secures first Jervois funding
KGL Resources has received a $US16 million ($22.7m) payment from Wheaton Precious Metals under a precious metals purchase agreement (PMPA), marking a key milestone in the development of the Jervois copper project in the Northern Territory.
Announced in April, the PMPA comprises $US275 million in upfront consideration and an additional contingent $US25 million Cost Overrun Facility. The upfront funding includes a $US32 million early deposit, payable in two tranches, and a further $US243 million available across four tranches linked to construction expenditure milestones.
Following receipt of the payment, KGL’s available cash position has increased from approximately $5.5 million as at May 31, 2026 to around $28 million.
“This is an exciting and important milestone for KGL which enables us to continue the early works components of the project, maintains our schedule and brings us closer to a final investment decision,” KGL Resources chief executive officer Sam Strohmayr said.
Early works activities include water supply infrastructure, process plant engineering, long-lead items, an initial construction camp and selected services.
A second tranche of the early deposit is planned for late September 2026 and remains subject to customary conditions, including Foreign Investment Review Board (FIRB) approval being received by Wheaton and evidence of early works expenditure.
Under the agreement, the remaining $US243 million is expected to be drawn in four equal tranches during the construction period.
Access to the first of those tranches is subject to several conditions, including the appointment of an open-pit mining contractor, execution of material development and construction contracts, ongoing sustainability reporting, maintenance of FIRB approval and securing the balance of capital required for project completion.