Silver Wheaton Acquired Precious Metals Streams From HudBay Mine and Constancia Project

Silver Wheaton (TSX:SLW) announced the closing of a purchase between the company and HudBay Minerals (TSX:HBM) whereby Silver Wheaton has purchased 100% of the life of mine silver production from the currently producing 777 Mine  as well as 100% life of mine production from the Constancia Project. Silver Wheaton is also to receive 100% of the life of mine gold production from 777 Mine until Constancia satisfied a completion test or the end of 2016 at which point gold from 777 will be reduced to 50%.

As quoted in the press release:

 Silver Wheaton will pay Hudbay total cash consideration of US$750 million, of which US$500 million was paid upon today’s closing, with two further payments of US$125 million each to be made upon the satisfaction of minimum capital expenditures having been incurred at Constancia. In addition, Silver Wheaton will make ongoing payments of the lesser of US$5.90 per ounce of silver and US$400 per ounce of gold (both subject to an inflationary adjustment) or the prevailing market price per ounce of silver and gold delivered.

Click here to view the full press release.