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Silver Wheaton Corp. (TSX:SLW) announced that it will extend the outside completion date of its silver streaming agreement on Barrick Gold Corp.’s (TSX:ABX,NYSE:ABX) Pascua Lama project to December 31, 2016. That is a year later than originally planned.
Silver Wheaton Corp. (TSX:SLW) announced that it will extend the outside completion date of its silver streaming agreement on Barrick Gold Corp.’s (TSX:ABX,NYSE:ABX) Pascua Lama project to December 31, 2016. That is a year later than originally planned.
As quoted in the press release:
As part of Silver Wheaton’s original contract with Barrick, Barrick has provided Silver Wheaton with a completion guarantee, requiring Barrick to complete Pascua-Lama to at least 75% of design capacity by December 31, 2015. During 2014 and 2015, Silver Wheaton will be entitled to silver production from three of Barrick’s currently producing mines, the Lagunas Norte, Pierina, and Veladero mines, to the extent of any production shortfall at Pascua-Lama, until Barrick satisfies the completion guarantee.
According to the original silver purchase agreement, if the requirements of the completion guarantee have not been satisfied by an outside completion date of December 31, 2015, the agreement may be terminated by Silver Wheaton. Given the recent developments, Silver Wheaton has agreed to extend the outside completion date for Pascua-Lama to December 31, 2016.
Click here to read the full Silver Wheaton Corp. (TSX:SLW) press release.