Friday, November 6th, 2009
Gold Wheaton signs deal for share of gold production from South African mine
VANCOUVER, B.C. - Gold Wheaton Gold Corp. (TSXV:GLW) said Friday it has signed a deal with First Uranium Corp. (TSX:FIU) to buy seven per cent of the gold production from the Ezulwini Mine in South Africa.
Under the agreement, Gold Wheaton will pay US$50 million on the closing of the deal plus the lesser of US$400 per delivered ounce and the prevailing spot price of gold, subject to an annual inflation adjustment.
First Uranium's subsidiary Ezulwini Mining Co. holds a mining right over approximately 3,718 hectares, about 40 kilometres from Johannesburg.
EMC has redeveloped the old North Section of the Western Areas gold mine with a new mining area being opened up and a new gold and uranium processing plant recently constructed and commissioned.
The deal is expected to close later this month.
