Vancouver, British Columbia, March 17, 2008 - Silver Wheaton Corp.
("Silver Wheaton") (TSX, NYSE: SLW) is pleased to announce that
it has agreed to purchase all of the silver produced by Mercator Minerals
Ltd. ("Mercator") (TSX: ML), at its copper-molybdenum-silver
Mineral Park Mine in Arizona.
Upon the successful close of the transaction, Silver Wheaton will pay
Mercator an upfront cash payment of US$42 million in order to acquire the
silver produced by the Mineral Park Mine over its entire mine life, for
the lesser of US$3.90 (subject to a one percent annual adjustment
beginning three years after a minimum production level has been met) and
the prevailing market price per ounce of silver. Payment for the
transaction will be drawn from existing credit facilities and Silver
Wheaton is not required to pay any further capital expenditures for the
life of the mine.
The Mineral Park Mine currently produces copper from SX/EW leach
operations, but construction is well underway on a flotation operation
that will produce copper-silver and molybdenum concentrates. Mercator
expects that concentrate production will commence before July 2008 from a
25,000 tons per day operation, with production increasing to 50,000 tons
per day approximately nine months later. All permits for the
expansion are in place and the expected mine life is 25 years. Payable
silver production is expected to average approximately 600,000 ounces
per annum over the first 21 years of operations and the ore body is
considered to have excellent exploration potential.
Mercator will provide a completion guarantee to Silver Wheaton,
specifying a minimum production level by a certain date.
"Silver Wheaton continues to deliver on its promise of accretive
acquisitions of silver streams", said Peter Barnes, President and
Chief Executive Officer of Silver Wheaton. "Mercator has
assembled an excellent operating team and we are proud to be partnered
with another successful US based copper producer from which we expect to
begin receiving delivery of silver this year. This is another
example of how Silver Wheaton can work with our operating partners to
help them grow."
Mr. Randy V.J. Smallwood, P.Eng., Silver Wheaton's Executive Vice
President of Corporate Development, who is a "qualified person"
as such term is defined under National Instrument 43-101, has reviewed
and approved the contents of this news release. Production rates,
reserves and resources are as reported by Mercator in a technical report
dated December 29, 2006.
Silver Wheaton is the largest public mining company with 100% of its
operating revenue from silver production. Silver Wheaton's 2008
silver sales are expected to approximate 15 million ounces, increasing to
25 million ounces in 2010. Silver Wheaton is unhedged and well
positioned for further growth.
Mineral Park silver reserves and resources are as
follows:
Notes:
1.
Mineral Reserves and Mineral
Resources for Mineral Park have been calculated as of December 29, 2006 in accordance
with the standards of the Canadian Institute of Mining, Metallurgy and
Petroleum and National Instrument 43-101.
2.
The above Mineral Reserves do
not include the low grade SX/EW leachable Mineral Reserves of 82.5
million tonnes, which only produce copper to the credit of
Mercator.
3.
Mineral Reserves and Mineral
Resources are estimated using appropriate metallurgical recovery rates in
the calculation of copper equivalent cut off grades.
4.
Measured and Indicated Mineral
Resources are inclusive of Mineral Reserves.
5.
Mineral Resources are reported
using a 0.3% copper equivalent cut off grade.
6.
Mineral Resources which are
not Mineral Reserves do not have demonstrated economic viability.
7.
As reported by Mercator in
their technical report dated December 29, 2006. The report can be found at www.sedar.com.
Cautionary Note Regarding
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to
the expected future silver sales by Silver Wheaton and the amount of
estimated future production from the Mineral Park mine. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans",
"expects" or "does not expect", "is
expected", "budget", "scheduled",
"estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state
that certain actions, events or results "may",
"could", "would", "might" or "will be
taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Silver Wheaton to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the integration of acquisitions,
the absence of control over mining operations from which Silver Wheaton
purchases silver and risks related to these mining operations, including
risks related to international operations, actual results of current
exploration activities, actual results of current reclamation activities,
conclusions of economic evaluations, changes in project parameters as
plans continue to be refined, as well as those factors discussed in the
section entitled "Risk Factors" in Silver Wheaton's short form
prospectus dated February 8, 2008. Although Silver Wheaton has
attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements.
Silver Wheaton does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in
accordance with applicable securities laws.
CAUTIONARY NOTE TO U.S. INVESTORS
CONCERNING ESTIMATES OF MEASURED AND INDICATED RESOURCE
This news release uses the terms "Measured" and
"Indicated" Resources. U.S. investors are advised that
while such terms are recognized and required by Canadian regulations, the
Securities and Exchange Commission does not recognize them. U.S.
investors are cautioned not to assume that all or any part of Measured or
Indicated Resources will ever be converted into reserves.
For further information, please
contact:
David Awram
Director, Investor Relations
Silver Wheaton Corp.
Tel:
1-800-380-8687
Email: info@silverwheaton.com
Website: www.silverwheaton.com
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