Silver reseller Silver Wheaton has made good on its promises to announce more acquisitions this year, announcing on Tuesday that it will buy 75% of the life-of-mine-silver produced by TSX-listed Farallon Resources, at its Campo Morado property, in Mexico.

The first mine on the property, the G-9 polymetallic deposit, is expected to start production in the third quarter of this year.

Silver Wheaton will pay $80-million upfront for the right to buy 75% of the silver produced at Campo Morado for the lesser of $3,90/oz or the prevailing market price at delivery.

The $80-million will drawn down by Farallon to fund ongoing capital expenditure on the Campo Morado property.

Silver Wheaton buys silver from producers on a long-term basis, at predetermined prices, and then sells the metal at the current spot price.

The G-9 underground mine is expected to produce at least one-million ounces of silver a year, as well as zinc, copper, gold and lead.

“The high-grade and still-growing G-9 deposit should form the cornerstone for the development of a world-class massive sulphide district,” Silver Wheaton president and CEO Peter Barnes said.

“This project has all the right ingredients - good management, a quality asset, low political risk, near-term production and rich exploration potential.”

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