Silver Wheaton Corp. (TSX:SLW,NYSE:SLW) announced that it will pay Hudbay Minerals Inc. (TSX:HBM,NYSE:HBM) $750 million in order to acquire full life of mine silver production from Hudbay’s 777 mine and Constancia project.
According to the press release, highlights of the transaction include:
- Average annual attributable production from 777 is anticipated to be approximately 4.2 million silver equivalent ounces, including 0.82 million ounces of silver and 68,000 ounces of gold, until the end of 2016;
- Silver Wheaton’s total forecast 2012 silver equivalent production increases from 27 million ounces to approximately 28 million ounces, including 42,000 ounces of gold;
- Combined, 777 and Constancia will increase Silver Wheaton’s average annual silver equivalent production by approximately 4.9 million ounces;
- Silver Wheaton’s total forecast 2016 silver equivalent production increases from 43 million ounces to approximately 48 million ounces (including 100,000 ounces of gold), an increase of 90% from 2011.