VANCOUVER – Silver Wheaton Corp
. has arranged a streaming agreement with a subsidiary of Glencore
to acquire silver from the Antamina copper mine in which Glencore has a 33.75% interest. The mine, located in the Andes Mountains 270 km north of Lima, Peru, is co-owned by BHP Billiton
(33.75%), Teck Resources
(22.5%), and Mitsubishi Corp
Silver Wheaton’s streaming agreement with Glencore covers 33.75% of the mine’s silver output until 140 million oz of silver has been delivered, and then 22.5% for the remaining life of the mine. Silver Wheaton will give US$900 million immediately to Glencore, and pay 20% of the spot silver price per ounce delivered.
The stream from Antamina will add 5.1 million oz of silver to Silver Wheaton’s production and cash flow in 2016 and 2017. After that, the company anticipates the stream will provide 4.7 million oz per year over 20 years.
Details of the agreement are available on Silver Wheaton’s website, SilverWheaton.com