Silver Wheaton Corp. (TSX:SLW, NYSE:SLW) announced that they will acquire from a Vale SA subsidiary an amount of gold equal to 25% of the life of mine gold production from its Salobo Mine in Brazil and 70% of the gold production, for a 20-year term, from mines in Sudbury.
As quoted in the press release:
The Company will pay Vale, within 10 business days of this press release, total cash consideration of US$1.90 billion, and has issued to Vale 10 million Silver Wheaton warrants with a strike price of US$65 and a term of 10 years. US$1.33 billion will be paid for 25% of the gold production from Salobo, while US$570 million, plus the 10 million Silver Wheaton warrants issued to Vale, will be the consideration for 70% of the Sudbury gold production. 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.