Silver Wheaton to Pay $900 Million for Glencore Silver Stream

Glencore plc (LSE:GLEN) announced that Anani Investments Ltd., its wholly owned subsidiary, has entered into a long-term streaming agreement with a wholly owned subsidiary of Silver Wheaton Corp. (TSX:SLW,NYSE:SLW).
The agreement is part of Glencore’s debt-reduction plan, and is for the delivery of silver from the Peru-based Antamina mine.
As quoted in the press release:

Silver Wheaton will make an advance payment of US$900 million to Glencore five business days after the closing of the transaction (closing is subject to the completion of certain corporate matters and customary conditions and is expected to occur prior to the end of November 2015). Thereafter, Silver Wheaton will pay 20% of the spot price at the time of delivery for each ounce of silver delivered to Silver Wheaton under the streaming agreement.
In return, Glencore will deliver silver to Silver Wheaton equivalent to 33.75% of silver produced by the Antamina mine at a 100% payable rate. After 140 million ounces of silver have been delivered under the streaming agreement, the stream will be reduced to the equivalent of 22.50% (corresponding to two-thirds of Glencore’s ownership interest in Antamina) of silver produced by the Antamina mine.

Click here to read the full Glencore plc (LSE:GLEN) press release.