Vancouver's Gold Wheaton Gold Corp. (TSX-V:GLW) plans to raise $100 million in debt financing to acquire additional gold streams from other mining companies.
Sprott Asset Management Inc., on behalf of certain funds and managed accounts, has agreed to subscribe to Gold Wheaton's senior secured notes, which will bear 10% annual interest over a five-year term.
Gold Wheaton has also agreed to issue 125 million warrants with a five-year term, which would be exercisable at $0.50 per share.
David Cohen, company chairman and CEO, said the debt financing significantly increases the company's cash position without diluting its shareholder base.
Gold Wheaton is a gold company with 100% of its operating revenue generated from the sale of gold and precious metals produced by other mining companies.
Gold Wheaton's share price range during the past week: between $0.23 and $0.24; 52-week high: $1.85; 52-week low: $0.07.