VANCOUVER, July 1, 2013 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton"
or the "Company") (TSX:SLW) (NYSE: SLW) today provides an update on the
Pascua-Lama project, on which Silver Wheaton has a silver streaming
agreement with Barrick Gold Corporation ("Barrick").
As per Barrick's news release dated June 28, 2013, Barrick "has
submitted a plan, subject to review by Chilean regulatory authorities,
to construct the project's water management system in compliance with
permit conditions for completion by the end of 2014, after which
Barrick expects to complete remaining construction works in Chile,
including pre-stripping. Under this scenario, ore from Chile is
expected to be available for processing by mid-2016."
As part of Silver Wheaton's original contract with Barrick, Barrick has
provided Silver Wheaton with a completion guarantee, requiring Barrick
to complete Pascua-Lama to at least 75% of design capacity by December
31, 2015. During 2014 and 2015, Silver Wheaton will be entitled to
silver production from three of Barrick's currently producing mines,
the Lagunas Norte, Pierina, and Veladero mines, to the extent of any
production shortfall at Pascua-Lama, until Barrick satisfies the
According to the original silver purchase agreement, if the requirements
of the completion guarantee have not been satisfied by an outside
completion date of December 31, 2015, the agreement may be terminated
by Silver Wheaton. Given the recent developments, Silver Wheaton has agreed to extend the
outside completion date for Pascua-Lama to December 31, 2016. In such
an event, Silver Wheaton will be entitled to the return of the upfront
cash consideration of $625 million less a credit for silver delivered
up to December 31, 2016. Silver deliveries from the other three mines
will still end at the end of 2015, to the extent of any Pascua-Lama
"As long as Barrick is still advancing construction of Pascua-Lama at
the end of 2015, Silver Wheaton does not intend to cancel the silver
stream", said Randy Smallwood, Silver Wheaton's President and Chief
Executive Officer. "We are in regular contact with Barrick, and are
confident that all the right measures are being taken to achieve
production at this mine. Pascua-Lama is a world class gold and silver
deposit and will be a world class mine once it begins production."
Silver Wheaton has revised its 2017 production forecast to 49 million
silver equivalent ounces from 53 million to reflect the delay at
Pascua-Lama. Production for 2013 is still expected to be 33.5 million
silver equivalent ounces.
SOURCE: Silver Wheaton Corp.
For further information:
Vice President, Investor Relations
Silver Wheaton Corp.