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TheStreet Open House

Silver Wheaton Acquires Life Of Mine Precious Metals Streams From Hudbay's 777 Mine And Constancia Project

Silver Wheaton's financial advisor is Minvisory Corp. and its legal counsel is Cassels Brock & Blackwell LLP.

FINANCING THE ACQUISITION

To pay the initial upfront cash payment of US$500 million, Silver Wheaton intends to use cash on hand, which was approximately US$997 million at the end of the first quarter of 2012. Remaining upfront cash payments totaling US$250 million are also expected to be financed with remaining cash on hand, supplemented by continued strong operating cash flows.

ABOUT 777 MINE

Hudbay's flagship 777 mine is located in the prolific Flin Flon Greenstone Belt, Manitoba, Canada, where Hudbay has been mining for nearly 85 years. A low-cost producer of zinc, copper, gold and silver, 777 is an underground mining operation, with an ore concentrator and zinc production facility located immediately adjacent to the mine. 777 commenced commercial production in 2004 and has a reserve mine life until 2020. The mine has very good exploration upside with drilling in recent years shifting from reserve definition to exploration. Over 21,000 metres of exploration drilling in 2011 will be followed up with a similar sized program in 2012, with a focus on targeting additional resources. In addition, completion of the 777 North expansion, which is well underway, will provide access to mineral resources in the north and east zones, and will also provide an underground exploration platform to enable the evaluation of additional exploration opportunities near the 777 mine.

ABOUT CONSTANCIA PROJECT

Constancia is located in an established mining district in the province of Chumbivilcas in southern Peru. It is forecast to be a large, lower-cost and long-life open pit mine, producing copper, molybdenum, silver and gold. With key environmental permits in place, strong community support, and engineering and design work essentially complete, first production is anticipated in 2014 with full production in 2015. Capital expenditures are estimated at US$1.5 billion and the mine plan currently contemplates an annual production rate of 90,000 tonnes of contained copper in concentrate with molybdenum, silver and gold by-products. Constancia has more than a 16 year mine life and will become Hudbay's largest mine, once in production. Considerable exploration potential exists, as was evidenced by an initial resource at the higher-grade Pampacancha satellite deposit, which was announced by Hudbay in April of 2012. Significant exploration drilling at Constancia is ongoing, and Hudbay believes that there is the potential to yield additional higher grade mineralization in satellite deposits.

UPDATED PRODUCTION GUIDANCE

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