Vancouver's Silver Wheaton Corp. (TSX:SLW) plans to acquire silver production from Pan American Silver Corp. (TSX:PAA) for US$32.4 million.
Under the proposed deal, Silver Wheaton will acquire about 12.5% of the life of mine silver from the Loma de La Plata zone of Pan American's Navidad project.
Located in Argentina's Chubut province, the Navidad project is one of the largest undeveloped silver deposits in the world.
The deal, which is expected to be finalized by the end of the year, has the potential to increase Silver Wheaton's long-term silver production by two million ounces per year.
Silver Wheaton will pay the US$32.4 million cash payment in installments plus $4 per ounce or the prevailing silver produced at Navidad, once the project begins production.
Silver Wheaton's share price range during the past week: between $15.38 and $16.27; 52-week high: $18.36; 52-week low: $7.26.
Pan American Silver's share price range during the past week: between $21.65 and $22.48; 52-week high: $28.73; 52-week low: $16.19.