All-stock transaction worth $190 millionI know this is the wrong Board,,,,,,But thought it might worth a read,,,,,,,
All-stock transaction worth $190 million
Silver Wheaton Corp. (TSX: T.SLW, Stock Forum) announced Thursday that it has entered into an agreement to acquire Silverstone Resources Corp. (TSX: V. SST, Stock Forum) in a transaction worth $190 million.
Silver Wheaton is set to acquire all of the outstanding common shares of Silverstone, exchanging 0.185 common shares of Silver Wheaton for each common share of Silverstone. The transaction values Silverstone at $1.47 per common share.
The company says the transaction “enhances Silver Wheaton's immediate production and cash flow profile by adding 2009 annualized production of approximately 2.3 million ounces of silver and 31,000 ounces of gold” as well as adds future growth potential.
Silverstone's board of directors as well as Capstone Mining Corp., its largest shareholder with 24% of Silverstone, have entered into support agreements in respect of the transaction.
Silverstone's core assets consist of silver stream agreements with Capstone's Minto mine in Canada and its Cozamin mine in Mexico, as well as Lundin Mining Corporation's Neves-Corvo mine in Portugal.
"This acquisition successfully consolidates the silver streaming industry and adds current production from low-cost, high-quality mines in politically stable jurisdictions," says Peter Barnes, president and chief executive officer of Silver Wheaton. "Silverstone's core assets, the Minto, Cozamin and Neves-Corvo mines, have proven to be operationally strong and offer Silver Wheaton an immediate and significant increase in silver sales and cash flows, with good future upside potential. The acquisition will further strengthen our already solid balance sheet and provides an added level of flexibility in pursuing future accretive silver stream opportunities. Additionally, the acquisition establishes a relationship with another strong base metals operator focused on growth, Capstone Mining. Capstone has a first rate management team, evidenced by their strong operating record and the creation of shareholder value at both the Minto and Cozamin mines, and we look forward to developing this partnership further," he added.