TORONTO (miningweekly.com) – Precious metals streaming firm Silver Wheaton has acquired another 25% stake in the gold output from Vale’s Salobo mine, in Brazil.
The deal immediately increased Silver Wheaton's output and cash flow profile by enhancing its expected average gold output by 70 000 oz/y for the first ten years and 60 000 oz/y over the first 30 years.
The TSX- and NYSE-listed company had agreed to pay $900-million in cash for the increased gold stream, lifting its attributable gold output from the Salobo mine to 50% from an initial 25%, acquired in 2013.
To pay the initial upfront cash payment, Silver Wheaton intended to use cash on hand together with the net proceeds of an $800-million equity offering also announced on Monday.
The company would issue 39-million shares at $20.55 each to a financing syndicate led by Scotiabank. Under the deal, the syndicate would have the option to sell a further 5.8-million shares.
The share offering was expected to close on March 17.
For 2015, Silver Wheaton expected to produce 43.5-million ounces of silver equivalent, including 230 000 oz of gold. These totals were forecast to rise to 51-million ounces of silver equivalent, including 325 000 oz of gold, in 2019.
Silver Wheaton's TSX-listed shares closed 1.48% lower at C$26.60 on Monday.