Vancouver's Silver Wheaton Corp. (TSX:SLW) plans to buy between 45% and 90% of the silver produced by Vancouver-based Augusta Resource Corp.'s (TSX:AZC) Rosemont mine in Arizona.
Silver Wheaton will provide an upfront payment of between US$135 million and US$165 million for 45% of Rosemont's silver or up to US$320 million for 90% of the silver produced during the life of the mine.
The upfront payment will fund construction of the Rosemont mine as milestones are achieved.
Silver Wheaton will not be required to pay any further ongoing per-ounce payments for silver delivered from Rosemont.
The purchase deal is subject to Augusta's receiving assorted regulatory approvals and all the necessary permits and financing to build and operate the mine.
Silver Wheaton's share price range during the past week: between $13.88 and $15.30; 52-week high: $16.99; 52-week low: $10.41.