Canadian Mining Journal

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Silver Wheaton to pay Vale US$800M to increase gold stream at Salobo to 75%



Silver Wheaton (TSX: SLW; NYSE: SLW) is offering Vale (NYSE: VALE) US$800 million to buy another 25% gold stream from the miner’s Salobo copper-gold mine in Brazil, pushing up its annual gold production.

Vancouver-based Silver Wheaton already has a 50% gold stream on Salobo’s life-of-mine production, with the latest acquisition giving the company access to 75% of the mine’s gold by-product.

The transaction should immediately increase Silver Wheaton’s consolidated production and cash flow, as Salobo should deliver 300,000 oz of gold a year between 2016 and 2020, of which Silver Wheaton will receive three-fourths as of July 1, 2016.

Read the entire story at www.NorthernMiner.com/news/silver-wheaton