Silver Wheaton to get $550 million in shares sale

Cecilia Jamasmie | March 31, 2016 | 5:18 am Precious Metals Canada Europe Gold Silver

Silver Wheaton to get $500 million in shares sale

Silver Wheaton will use the proceeds of the offering to repay a line of credit drawn in November for the $900 million purchase of future silver production at the Antamina mine in Peru. (Image courtesy of Antamina)

Canada’s Silver Wheaton (TSX, NYSE:SLW) expects to raise at least $550 million by selling new shares after reaching an agreement with a syndicate of underwriters in a so-called bought deal.

The Vancouver-based silver and gold streaming company said that proceeds of the offering, which is scheduled to close around April 7, will be used to repay a line of credit drawn in November for the $900 million purchase of future silver production at the Antamina mine in Peru.

Streaming firms typically provide a chunk of cash upfront to mining companies to secure a “stream” of precious metals down the road. These sorts of deals have become increasingly popular of late, as miners have had great difficulty raising cash on stock and bond markets.