0% Gold Wheaton opts for gold
I-Net Bridge | Fri, 06 Nov 2009 17:24[miningmx.com] -- First Uranium Corporation announced on Friday that it has entered into a definitive agreement with Gold Wheaton (Barbados) Corporation (GW), a wholly-owned subsidiary of Gold Wheaton Gold Corp., for GW to purchase 7% of the estimated 5.8 million ounces of the life-of-mine gold production from the company's Ezulwlini Mine in South Africa. Subject to certain conditions and approvals, the transaction is expected to close in late November 2009. Under the terms of the transaction, GW shall pay First Uranium $50 million upon closing of the transaction and, upon each gold delivery, an ongoing payment equal to the lesser of $400 per ounce and the prevailing spot price (subject to an annual inflation adjustment of 1%, starting in the fourth year after the closing payment). Under the terms of the transaction, the Ezulwini Mine will deliver to GW a guaranteed minimum of 16,500 ounces in 2010, 19,500 ounces in 2011 and an average of approximately 26,000 ounces of gold per annum thereafter. "This second transaction with Gold Wheaton highlights the value of our substantial co-product gold production at Ezulwini," said Gordon Miller, President and CEO of First Uranium. "This builds on our existing relationship with Gold Wheaton that began with the November 2008 agreement with respect to our Mine Waste Solutions operation." The proceeds of the transaction will be utilized to mitigate the effects of future challenges in economic and industry conditions or any adjustments to the company's capital or operating programs, such as delays in permitting or production.
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