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Message: Gold Wheaton Signs Definitive Agreement With First Uranium Corporation
| November 28, 2008 |
| Gold Wheaton Signs Definitive Agreement With First Uranium Corporation |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) - Gold Wheaton Gold Corp. (TSX VENTURE:GLW) ("GWC") is pleased to announce that Gold Wheaton (Barbados) Corporation ("Gold Wheaton"), a wholly-owned subsidiary of GWC, has signed a definitive agreement with First Uranium Corporation (TSX:FIU)(JSE:FUM) ("First Uranium") further to the letter of intent which was previously announced by GWC on November 4, 2008. Gold Wheaton will purchase a minimum of 20,000 ounces of gold in 2009 (up to a maximum of 25 percent of the gold production) and thereafter 25 percent of the life-of-mine gold production from First Uranium's Mine Waste Solutions tailings recovery operation ("MWS") in South Africa. First Uranium will submit applications for approval of the transaction to the South African Reserve Bank and the South African Revenue Service. Upon satisfaction of certain escrow deposit conditions, Gold Wheaton shall pay US$50 million (the "First Payment") into escrow, with the escrow to be released upon the satisfaction of certain closing conditions including registration of a notarial bond on certain of the MWS tailings dams and a pledge of 25 percent of the gold produced from MWS. Under the terms of the transaction, in addition to the First Payment, Gold Wheaton shall pay First Uranium: - subject to financing, US$75 million on or before three months following closing (the "Second Payment"), failing which the purchase shall be reduced to 10 percent of the life-of-mine gold production and appropriate credits will be made; and - an ongoing payment equal to the lesser of US$400 per ounce and the prevailing spot price (subject to an annual inflation adjustment of 1 percent, starting in the fourth year after the First Payment). Gold Wheaton will not be required to contribute to any capital or exploration expenditures in respect of First Uranium's tailings recovery operation. Gold Wheaton will be provided with a right of first refusal on any future gold stream agreements or similar arrangements proposed to be entered into by First Uranium or its subsidiaries in respect of the MWS project or the Ezulwini mine. "We are pleased to move forward with First Uranium on this transaction and cement a long term relationship," commented David Cohen, Chairman and CEO of Gold Wheaton. "In addition to their current production, they have made substantial positive progress on the phase 2 expansion project and remain on track for the planned commissioning in the second quarter of 2009." Closing of the transaction is expected to occur on or before December 12, 2008. |
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