Alexco Resources, Silver Wheaton amend Keno Hill silver streaming deal

Alexco Resources (AXU) says it reached agreement with Silver Wheaton (SLW) to amend the 2008 silver purchase agreement so that the fixed $3.90/oz. silver streaming production payment is replaced with a variable production payment based on the spot price of silver.

The agreement applies to 25% of AXU's payable silver produced at its Keno Hill silver mining operations in Yukon, Canada.

Comments (6)
  • ziggysdad
    , contributor
    Comments (43) | Send Message
    I think this is a bad deal for Silver Wheaton.
    16 Jun 2014, 07:07 PM Reply Like
  • Prezzo giusto
    , contributor
    Comments (1140) | Send Message
    No it isn't. What's the worth of a lucrative deal for the streamer if the mining company is choked by it? The deal had to be adapted to circumstances that weren't foreseeable at the time it was closed.
    17 Jun 2014, 06:19 AM Reply Like
  • Mach 1
    , contributor
    Comment (1) | Send Message
    I love this deal. Good job Mr Clint Nauman.
    16 Jun 2014, 07:35 PM Reply Like
  • Tealeaf
    , contributor
    Comments (10) | Send Message
    We need the Detail, the Devil is always in the Detail
    16 Jun 2014, 07:36 PM Reply Like
  • sinedo
    , contributor
    Comments (501) | Send Message
    "...The amended silver streaming agreement applies to 25% of Alexco's payable silver produced at its Keno Hill silver mining operations in Yukon, Canada. The newly agreed variable production payment is defined by a pricing curve with an apex at $19.45 spot silver price where Silver Wheaton will make a production payment to Alexco of $18.00 per ounce of silver delivered; that payment decreases by $0.91 per ounce for each $1.00 increase or decrease in silver price from $19.45, returning to a fixed $3.90 per ounce for spot silver prices of $35.00 per ounce and higher. The amendments to the underlying Silver Purchase Agreement are subject to Alexco paying Silver Wheaton $20 million by December 31, 2014 (or such later date as the parties may agree), with Silver Wheaton taking a lead role via participation in $5 million of any Alexco equity raise in excess of $10 million towards the $20 million payment. In addition, a Silver Wheaton area of interest is established to include additional Alexco currently owned and future acquired properties within one kilometer of existing Alexco holdings in the Keno Hill Silver District. The amendment will be effective for a 10 year term from the time mining production re-commences in the District, with an option for Alexco to extend the amendment for another 5 or 10 years for an additional $10 million or $20 million, respectively...."
    16 Jun 2014, 08:02 PM Reply Like
  • haleiwahu
    , contributor
    Comments (4011) | Send Message
    Not a whole lot of movement is going to happen until silver breaks out of its doldrums into the $20>+ range and maintains its value
    17 Jun 2014, 09:37 PM Reply Like
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