Silver Wheaton Acquires 11% Interest in Mines ManaSilver Wheaton Acquires 11% Interest in Mines Management and Right of First Refusal Over Silver Stream
VANCOUVER, BRITISH COLUMBIA, Nov 05, 2007 (MARKET WIRE via COMTEX News Network) --
Silver Wheaton Corp. ("Silver Wheaton") (TSX: SLW) (NYSE: SLW) is pleased to announce that it has acquired 2,500,000 common shares of Mines Management, Inc. ("Mines Management") (TSX: MGT) (AMEX: MGN) at a price of US$4.00 per share for a total purchase price of US$10,000,000. The proceeds of the offering are primarily intended for use on further development of Mines Management's Montanore silver-copper project (the "Montanore Project"), one of the world's 30 largest silver deposits.
As a result of this transaction, Silver Wheaton owns 11.2% of the outstanding shares of Mines Management and has been granted a right of first refusal over any silver stream sales by Mines Management from any of its projects in Montana.
Mines Management's 100%-owned Montanore Project is located in northwestern Montana. The Montanore Project is reported by Mines Management to host mineral resources of 166 million ounces of silver and 1.2 billion pounds of copper in the measured and indicated categories and a further 65 million ounces of silver and 500 million pounds of copper in the inferred category (refer to the table at the end of this news release for further details).
"With this investment, Silver Wheaton now has a significant stake in six of the top 30 largest known silver deposits in the world," said Peter Barnes, President and Chief Executive Officer of Silver Wheaton. "Of these six projects, Silver Wheaton has silver stream agreements in place with two, Penasquito and San Dimas, and is the largest shareholder in companies owning a further four, being Revett Minerals Inc., Sabina Silver Corporation, Bear Creek Mining Corporation and now Mines Management. In addition, we have rights of first refusal over future silver stream sales with both Mines Management and Sabina Silver Corporation. This demonstrates the strength of Silver Wheaton in the silver sector, and our potential for significant further growth."
Silver Wheaton has acquired the Mines Management shares for investment purposes and may acquire additional securities or dispose of its beneficial ownership, control or direction over securities through market transactions, private placements, treasury issuances or otherwise as circumstances or market conditions warrant or arise.
Mines Management has reported that, as of October 14, 2005, the Montanore Project had the following measured, indicated and inferred mineral resources:
MONTANORE PROJECT(1,2)
Silver Copper True Contained
Category Tons Grade Grade Thickness Silver
(Ounces (Million
per ton) (%) (feet) Ounces)
Measured 4,026,000 1.85 0.74 39 7.4
Indicated 77,480,000 2.05 0.75 34 158.8
Inferred 35,080,000 1.85 0.71 32 65.06
1. The estimate above, which is prepared in accordance with Canadian
National Instrument 43-101, was prepared by Mine Development Associates
for Mines Management. The technical report, which includes metal pricing
and other parameters, was filed by Mines Management on March 6, 2006 and
can be found at www.sedar.com.
2. The above resources are reported using a cut-off of 1.0 silver ounce per
ton.
Mr. Steven Ristorcelli, R.P. Geo., C.P.G. of Mine Development Associates, Inc. and David C. Fitch, C.P.G., associate of Mine Development Associates, who are "qualified persons" as such term is defined under National Instrument 43-101, have reviewed and approved the mineral resource estimates for the Montanore Project contained in this news release.
Silver Wheaton is the largest public mining company with 100% of its operating revenue from silver production. The Company expects to have silver sales of approximately 13 million ounces for the year ended December 31, 2007, increasing to 28 million ounces by 2012. Silver Wheaton is unhedged and well positioned for further growth.