GOLD: Silver Wheaton buys part of by-product stream from Vale

VANCOUVER – Silver Wheaton has agreed to buy 70% of the payable gold by-product stream from mines belonging to Vale SA, including the Coleman, Copper Cliff, Creighton, Garson, Stobie, Totten and Victor mines near Sudbury, ON, for 20 years. The deal also includes 25% of the payable gold by-product stream from the Salobo copper mine in Brazil for the life of the mine.

The deal includes a cash consideration of US$1.90 billion payable to Vale plus 10 million Silver Wheaton warrants. An amount of US$1.33 billion represents 25% of the Salobo gold stream, and US$570 million represents 70% of the gold stream from the Sudbury mines. Silver Wheaton will make ongoing payments of the lesser of US$400 (subject to a 1% annual inflation adjustment from 2016 for Salobo) and the prevailing market price for each ounce of gold delivered under the agreement.

Silver Wheaton expects the agreement to immediately provide cash flow and boost the company's growth profile. It also increases Silver Wheatons exposure to gold. And the Canadian company is pleased to partner with one of the world's largest mining company.

Detailed terms of the transaction are available at SilverWheaton.com.