MEXICO – GOLDCORP of Vancouver has executed a binding term sheet to sell 25% of the life-of-mine silver produced from its Peasquito project to SILVER WHEATON, also of Vancouver. The deal is worth $485 million. In addition, Silver Wheaton will pay an ongoing per-ounce operating cost payment.
As a result of this transaction, Silver Wheaton has extended Goldcorps right to maintain its pro-rata interest in Silver Wheaton to Dec. 31, 2009. Goldcorp currently owns 49% of the issued and outstanding Silver Wheaton shares. Silver Wheaton will retain a right of first refusal on any further sales of silver streams from Peasquito for the life of the mine as long as Goldcorp maintains at least a 20% interest in Silver Wheaton.
Goldcorp says its gold production will remain 100% unhedged.
The Peasquito gold and silver mine in Zacatecas state is expected to begin production in late 2008. The July 2006 feasibility study may be read at www.Goldcorp.com.