SLW-Farallon silver dealSLW-Farallon silver deal
https://www.stockhouse.com/tools/?page=%2FFinancialTools%2Fsn%5Fnewsreleases%2Easp%3Fsymbol%3DT%2ESLW%26newsid%3D6896542
Another SLW deal. Too big for SST, I guess, but interesting numbers for comparison with SST’s next deal.
“Silver Wheaton will pay Farallon US$80 million in order to acquire 75% of all silver produced from the Campo Morado property, including the G-9 mine, for the lesser of US$3.90 (subject to a one percent annual adjustment starting in year four after production commences) or the prevailing market price per ounce of silver delivered.”
Campo Morado silver is all resources, not reserves, containing 41mm oz M+I, 10.4mm oz inferred. See the NR for details, reported in two groupings, G-9, and then everything else.
Production is scheduled to start Q3 of 2008, 1mm oz annually.
Patchett said at the October resources show that $4/oz deals are a probably a thing of the past. Around $8 is more likely what they are thinking, I suspect. But SLW has shown since – twice, at least – that $4/oz can still be done, with the right upfront payment.
I can’t wait to see what SST’s next deal looks like.
HC