Lumina Gold Corp. (TSX-V: LUM) (OTCQX: LMGDF) is pleased to announce that it entered into a precious metals purchase agreement with Wheaton Precious Metals International Ltd., a wholly owned subsidiary of Wheaton Precious Metals Corp. in relation to its 100% owned Cangrejos gold-copper project located in El Oro Province, Ecuador on May 16, 2023. The Gold Stream initially represents 6.6% of the payable gold produced from the Project in exchange for US$48 million of pre-construction funding (the “Early Deposit”) and US$252 million of construction funding (the “Upfront Payment”).

Randy Smallwood, President and CEO of Wheaton commented: “The Cangrejos Project is an excellent addition to Wheaton’s existing portfolio of high-quality, low-cost assets as it should provide impactful, long-term growth as well as significant exploration potential. We welcome the opportunity to work with the team at Lumina who have done an outstanding job at working to de-risk the Project and advancing it towards construction.”

Ross Beaty, Lumina’s founder and largest shareholder commented: “This transaction validates the extensive technical work that the Lumina Group has completed on Cangrejos since 2014. It will de-risk the execution of the Cangrejos project and form a significant part of the US$1 billion of required construction capital. Cangrejos will represent one of the largest gold producers in the world once built and Wheaton will benefit from its three decades of mine life. We look forward to working with Wheaton’s extremely experienced team as the Project gets advanced.”

Transaction Overview

The Gold Stream is composed of two funding segments, (i) the Early Deposit to be paid during the completion of a feasibility study (as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) and permitting period, and (ii) the Upfront Payment to be paid during the construction of the Project. The US$48 million Early Deposit provides Lumina with the capital it requires to complete definition drilling, a feasibility study and permitting work at the Project. The Upfront Payment of US$252 million provides approximately 25% of the total construction funding required by the Project.

The Early Deposit of US$48 million is comprised of four components:

1. US$12 million at closing;
2. US$10 million 6 months after close;
3. US$15 million 12 months after close; and
4. an US$11 million tranche that can be drawn upon for specific pre-construction capital items.

The US$252 million Upfront Payment will be funded throughout the two-and a-half-year construction period for the Project.

In return for the Early Deposit and Upfront Payment, Lumina will sell 6.6% of the payable gold production from the Project until 700,000 ounces of gold have been delivered, at which point the Gold Stream will be reduced to 4.4% of the payable gold production. Wheaton will pay a production payment representing 18.0% of the spot price of gold for the first 700,000 ounces and 22.0% of the spot price of gold thereafter.

In the event of a change of control, the Company may buy back one-third of the Gold Stream from Wheaton until the earlier of January 1, 2030 and the date that is 12 months after first production.

About Lumina Gold

Lumina Gold Corp. is a Vancouver, Canada based precious and base metals exploration and development company focused on the Cangrejos Gold-Copper Project located in El Oro Province, southwest Ecuador. In 2023, the Company completed a Preliminary Feasibility Study for Cangrejos, which is the largest primary gold deposit in Ecuador. Lumina has an experienced management team with a successful track record of advancing and monetizing exploration projects.