SILVER WHEATON CORP. T.SLW

ag spin off great idea according to Ian

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GoldCorp/Glamis Deal May Lead To Silver Spin Offs: Telfer Thursday August 31st, 2006 / 18h26 By Brian Truscott Of DOW JONES NEWSWIRES VANCOUVER -(Dow Jones)- Goldcorp Inc.'s (G.T) recommended all-share offer for rival Glamis Gold Ltd. (GLG) could lead to a spin-off of the new company's formidable silver assets, Goldcorp's President and Chief Executive Ian Telfer said Thursday. "Spin off the silver assets? Wow, what a great idea," he said during a conference call to give details on the offer valued at US$8.6 billion. "It's not impossible to see how we could do something." If Goldcorp does close the Glamis deal, expected in November, the new Goldcorp would be sitting on substantial silver resources, primarily via Glamis' Penasquito project in Mexico and Goldcorp's Silver Wheaton Corp. (SLW) asset. Telfer said the split between what Goldcorp would have in terms of gold versus other metals now stands at 70/30, but "gold is what we're after - and assets that would have synergies in areas we now operate." He said any future acquisitions that Goldcorp might make would probably be based on this philosophy: "We would prefer to look for gold assets." Goldcorp, Canada's third-largest producer of gold, is offering Glamis shareholders 1.69 shares in the new Goldcorp, meaning they would control about 40% of the new company. The deal values Glamis shares at US$51.49 - about a 33% premium to Wednesday's closing price. The new Goldcorp would become the world's fifth-largest gold producer. While Glamis shares have climbed 19% to C$51.29 on news of the deal, Goldcorp's shares are down 9.2% to C$30.68, primarily because the deal will be dilutive from an earnings-per share and cash-flow basis. Telfer, who will become chairman of the new Goldcorp, defended the deal by saying the opportunity to increase reserves and resources was difficult to ignore. He also said the deal would be accretive from a net asset value base, which he said is the metric the market watches. Once the deal closes, the company will have proven and probable gold reserves of 41 million ounces. Measured and indicated resources would add up to 14 million ounces. Glamis' Preident and Chief Executive Kevin McArthur is slated to become the new company's president and chief executive. He said Glamis decided to tie up with Goldcorp because his smaller company is facing huge capital outlays for upcoming projects. "It made good sense," he said during the conference call. Glamis shareholders are expected to vote on the deal Oct. 30. Telfer said the multi-billion-dollar deal only started to come together in June, when an unnamed investment banker proposed the deal to the two executives. "It became clear to us that the value being created at Glamis was faster then we realized and faster then the market realized," he said. Company websites: www.glamis.com www.goldcorp.com -Brian Truscott, Dow JOnes Newswires; 604-669-1595; [e-mail] Thursday August 31st, 2006 / 18h26 provided by: