Home Page
03:36:08 EDT Sat 01 Nov 2014
Enter Symbol
or Name
USA
CA



Silver Wheaton Corp
Symbol C : SLW
Shares Issued 354,375,852
Close 2013-02-28 C$ 32.70
Recent Sedar Documents

Silver Wheaton to complete 25% of Salobo Au from Vale

2013-02-28 17:25 ET - News Release

Mr. Neil Burns reports

SILVER WHEATON COMPLETES DEFINITIVE AGREEMENT WITH VALE S.A. AND DEFINITIVE AGREEMENT ON NEW CREDIT FACILITIES

Further to the press release dated Feb. 5, 2013, Silver Wheaton Corp. has entered into a definitive agreement to acquire from a subsidiary of Vale S.A. an amount of gold equal to 25 per cent of the life-of-mine gold production from its Salobo mine, located in Brazil, as well as 70 per cent of the gold production, for a 20-year term, from certain of its Sudbury mines located in Canada. The transaction is no longer subject to Vale board approval, which has now been obtained.

The company will pay Vale, within 10 business days of this press release, total cash consideration of $1.90-billion (U.S.) and has issued to Vale 10 million Silver Wheaton warrants with a strike price of $65 (U.S.) and a term of 10 years (1). A total of $1.33-billion (U.S.) will be paid for 25 per cent of the gold production from Salobo, while $570-million (U.S.), plus the 10 million Silver Wheaton warrants issued to Vale, will be the consideration for 70 per cent of the Sudbury gold production. Silver Wheaton will make continuing payments of the lesser of $400 (U.S.) (subject to a 1-per-cent annual inflation adjustment from 2016 for Salobo) and the prevailing market price, for each ounce of gold delivered under the agreement.

In addition, Silver Wheaton has finalized the terms and entered into two new unsecured credit facilities, composed of: (1) a $1-billion revolving credit facility having a five-year term and (2) a $1.5-billion bridge financing facility having a one-year term. The revolving facility and bridge facility replaced the $400-million revolver loan and the term loan, with the latter being repaid in full on Feb. 22, 2013. For the revolving facility, Scotiabank and BMO Capital Markets acted as co-lead arrangers and joint bookrunners, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank acted as co-documentation agents, and Bank of Tokyo-Mitsubishi UFJ (Canada), HSBC Bank Canada and Export Development Canada acted as senior managers. For the bridge facility, Scotiabank and BMO Capital Markets acted as co-lead arrangers and joint bookrunners, Canadian Imperial Bank of Commerce and Royal Bank of Canada acted as co-documentation agents, and Toronto-Dominion Bank and Export Development Canada acted as senior managers. Combined with cash on hand, the additional credit capacity offered by these new credit facilities provides Silver Wheaton with sufficient access to capital to finance the upfront payment to Vale, while continuing its pursuit of additional accretive growth opportunities.

Neil Burns, Silver Wheaton's vice-president, technical services, is a qualified person as such term is defined under National Instrument 43-101 and has reviewed and approved the technical disclosure in this news release.

(1) The issue of the warrants is subject to receipt of all requisite regulatory approvals, including those from the Toronto Stock Exchange and the New York Stock Exchange.

(2) Silver equivalent production forecast assumes a gold/silver ratio of 53.3 to 1.

© 2014 Canjex Publishing Ltd. All rights reserved.