Silver Wheaton Acquires 10 Per Cent of Mine Gold Production from Sandspring's Toroparu Project

Silver Wheaton (Caymans) Ltd., a subsidiary of Silver Wheaton Corp. entered into an early deposit gold stream agreement with Sandspring Resources Ltd., whereby Silver Wheaton agreed to acquire 10 per cent of the life of mine gold production from Sandspring's Toroparu project located in the Republic of Guyana.

The total consideration for the purchase of the gold stream is US$148.5 million, with US$13.5 million to be advanced as an early deposit, payable to Sandspring upon satisfaction of various conditions. In addition, Silver Wheaton will make ongoing payments equal to the lesser of US$400 per ounce of gold (subject to inflationary adjustment) or the prevailing market price per ounce of gold delivered.

Silver Wheaton was represented by Curt Bernardi, senior vice president, legal and corporate secretary; and Tamara Howarth, senior legal counsel; and externally by Cassels Brock & Blackwell LLP with a team of Mark Bennett and Alexandra Iliopoulos (securities and mining); David Budd (financial services and mining), Jennifer Reed (financial services) and Patrick Petzall and Laura Weingarden (business law and mining).

Davies Ward Phillips & Vineberg LLP acted for Sandspring with a team of Kevin Thomson, Richard Fridman and Devon Comstock (corporate and mining); Derek Vesey (financial services) and Geoff Turner (tax).

Lawyer(s)

Curt D. Bernardi Richard Fridman Derek R.G. Vesey Geoffrey S. Turner Kevin J. Thomson Tamara L. Howarth Mark T. Bennett Alexandra (Alex) Iliopoulos David Budd