NEW YORK (TheStreet) -- Shares of Silver Wheaton (SLW) were falling 6.1% to $19.91 Tuesday after the silver miner announced it will sell $800 million worth of common stock, and will acquire a supply of gold from Vale's (VALE) - Get Report Salobo mine.

Silver Wheaton entered an agreement with underwriters led by Scotiabank to sell 38.93 million shares of common stock for $20.55 a share for aggregate gross proceeds of $800 million. The underwriters have a 30-day option to buy an additional 5,839,500 common shares for $20.55 a share.

The company will use the net proceeds from the offering to fund its acquisition of the gold stream from Vale.

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The gold stream Silver Wheaton will acquire from Vale's Salobo mine in Brazil equals 25% of the gold produced in the mine. The gold stream is in addition to the 25% stream the silver mining company purchased in 2013.

Silver Wheaton will pay Vale $900 million for the increased gold stream, and make ongoing payments of the less of $400 or the prevailing market price for each ounce of gold delivered as part of the agreement.

TheStreet Ratings team rates SILVER WHEATON CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate SILVER WHEATON CORP (SLW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• Although SLW's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 15.20, which clearly demonstrates the ability to cover short-term cash needs.
• Net operating cash flow has slightly increased to $120.38 million or 1.43% when compared to the same quarter last year. In addition, SILVER WHEATON CORP has also vastly surpassed the industry average cash flow growth rate of -57.24%.
• SLW, with its decline in revenue, slightly underperformed the industry average of 2.5%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• SILVER WHEATON CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SILVER WHEATON CORP reported lower earnings of $1.05 versus $1.65 in the prior year. For the next year, the market is expecting a contraction of 27.6% in earnings ($0.76 versus $1.05).
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 94.2% when compared to the same quarter one year ago, falling from $77.06 million to $4.49 million.
• You can view the full analysis from the report here: SLW Ratings Report