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Silver Wheaton Completes Early Deposit Gold Stream Agreement With Sandspring Resources

Stocks in this article: SLW

VANCOUVER, British Columbia, November 12, 2013 /PRNewswire/ --

TSX:SLW NYSE:SLW

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW) (NYSE:SLW) is pleased to announce that it has entered into an Early Deposit Gold Stream Agreement (the "Early Deposit Agreement") with Sandspring Resources Ltd. ("Sandspring") for the Toroparu project located in the Republic of Guyana, South America.

"Silver Wheaton continues to push the streaming model forward," said Randy Smallwood, Silver Wheaton's President and Chief Executive Officer. "The Early Deposit Agreement model allows us to get our foot in the door on high-quality, earlier stage projects such as Toroparu for relatively little upfront capital. From Sandspring's perspective, these funds will allow them to complete the bankable feasibility study without subjecting their shareholders to excessive dilution that today's challenging equity markets would deliver. Yet again, Silver Wheaton has developed another innovative, win-win business model. In todays market environment we expect this model to be very attractive to junior exploration and development companies looking for funding."

Under the Early Deposit Agreement, Silver Wheaton, through its wholly owned subsidiary Silver Wheaton (Caymans) Ltd., has the right to purchase 10% of the life of mine gold production from the Toroparu project (the "Gold Stream") for total cash consideration of US$148.5 million plus an ongoing production payment of the lesser of US$400 (subject to a 1% annual inflation adjustment starting in the fourth year after the completion test is satisfied) and the prevailing market price. Silver Wheaton will advance US$13.5 million to Sandspring once customary conditions have been met and at the closing of this agreement. The Company may then elect to proceed with the purchase of the Gold Stream following the delivery of a bankable definitive feasibility study, environmental study and impact assessment, and other related documents (collectively, the "Feasibility Documentation") or after December 31, 2015, if the Feasibility Documentation has not been delivered to Silver Wheaton by such date. If Silver Wheaton elects not to proceed with the Gold Stream, the Company will be entitled to either a return of US$11.5 million payable by Sandspring (on the basis that US$2 million of the advanced US$13.5 million is non-refundable) or a reduction in the stream percentage from 10% to 0.774%, at Sandspring's option.

About the Toroparu project

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