Vancouver's Farallon Resources Ltd. (TSX:FAN) has signed an US$80 million agreement with Silver Wheaton Corp. (TSX:SLW) to buy 75% of the silver produced at Farallon's mine in Mexico.
Proceeds from the agreement will be used to pay down Farallon's bridge loan with NM Rothchild and Sons Ltd., Paradigm Capital Inc. and Societe Generale.
Silver Wheaton paid US$15 million upon signing the agreement and a further US$15 million following completion of other milestones. The remaining US$50 million will be paid over a series of instalments over the next few months.
Silver Wheaton will also pay a fixed per-ounce price of US$3.90 or less for the silver delivered from Farallon's Campo Morado polymetallic project in Mexico's Guerrero state.
Farallon's share price range during the past week: between $0.79 and $0.81; 52-week high: $0.92; 52-week low: $0.54.
Silver Wheaton's share price range during the past week: between $14.50 and $14.98; 52-week high: $19.30; 52-week low: $10.45.