[Most Recent Quotes from www.kitco.com]

Press Release: Silver Wheaton finalizes amended silver purchase agreement in conjunction with Goldcorp’s sale of the San Dimas mine

VANCOUVER, Aug. 6 /CNW/ – Silver Wheaton Corp. (“Silver Wheaton” or the “Company”) (TSX, NYSE:SLW) is pleased to announce that, further to the Company’s June 2, 2010 press release, it has amended its silver purchase agreement relating to the San Dimas mine (“San Dimas”). The agreement was amended pursuant to the August 6, 2010 completion of Goldcorp Inc.’s (“Goldcorp”) sale of San Dimas to Primero Mining Corp. (“Primero”), formerly known as Mala Noche Resources (see Goldcorp and Primero press releases dated August 6, 2010). Key amendments to the silver purchase agreement are as follows:
– The term of the silver purchase agreement, which previously ended in
2029, has been increased to life-of-mine;
– During the first four years following closing, Primero will deliver
to Silver Wheaton a per annum amount equal to the first 3.5 million
ounces of payable silver produced at San Dimas and 50% of any excess,
plus Silver Wheaton will receive an additional 1.5 million ounces of
silver per annum to be delivered by Goldcorp;
– Beginning in the fifth year after closing, Primero will deliver to
Silver Wheaton a per annum amount equal to the first six million
ounces of payable silver produced at San Dimas and 50% of any excess;
– Goldcorp will continue to guarantee:
i. The delivery by Primero of all silver produced and owing to
Silver Wheaton, until 2029; and,
ii. A payment of US$0.50/oz for any shortfall below 215 million
cumulative silver ounces delivered to Silver Wheaton by the
end of 2031.
– Primero has provided Silver Wheaton with a right of first refusal on
any metal stream or similar transaction it enters into; and
– Silver Wheaton has obtained an increased security package over the
properties and assets of Primero.Under the terms of the amended silver purchase agreement, Silver Wheaton will continue to pay the lesser of US$4.04 (subject to an inflationary adjustment) or the prevailing market price per ounce of silver delivered.
About San Dimas

San Dimas has been in continuous production for well over 100 years and operates in the lowest cost quartile of gold-silver producers in the world. Over the substantial mine life to date, the operating team at San Dimas has demonstrated an exceptional track-record of converting resources into reserves and the mine continues to exhibit excellent exploration upside.

Current exploration programs at San Dimas are focused on locating the western extension of the Central Block region, where the majority of mining currently takes place. These programs met with considerable success late in 2009, and continue into 2010, positioning the mine for a new phase of long-term production growth.

About Silver Wheaton

Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.2 million ounces of silver and 20,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. This growth is driven by the Company’s portfolio of world-class assets, including silver streams on Goldcorp’s Penasquito mine and Barrick’s Pascua-Lama project.

Comments Closed

Comments are closed.