Silver Wheaton (TSE:SLW) Amends Goldcorp (TSE:G) Silver Agreement after San Dimas Deal

Silver Wheaton (TSE:SLW) (NYSE:SLW) has amended its agreement which they had with Goldcorp (TSE:G) (NYSE:GG) before they sold the San Dimas gold-silver mine to Mala Noche Resources (VAN:MLA).

The prior agreement, or the existing one before the company changes hands, allowed Silver Wheaton to acquire all the silver produced there.

That came to 5.1 million ounces of silver produced at the mine in 2009, which they sold at about $4 an ounce.

The new agreement includes the below:

As part of the amended agreement, during the first four years following closing of the transaction, Mala Noche will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp for approximately $4.00 per ounce. Beginning in the fifth year after closing, Mala Noche will deliver to Silver Wheaton a per annum amount equal to the first six million ounces of payable silver produced at San Dimas and 50% of any excess.

Goldcorp (TSE:G) Selling San Dimas Mine

Goldcorp Inc (TSE:G) (NYSE:GG) is selling its Mexican San Dimas gold-silver mine to a small mining company named Mala Noche Resources (VAN:MLA) for $500 million.

The move by Goldcorp continues its shedding of non-core assets to strengthen even more its low-cost operational practices which positions it strongly for whatever economic conditions emerge.

Terms of the deal are Mala Noche will pay Goldcorp $275 million in cash, $175 million in shares and another $50 million via a promissory note.

This isn't a done deal yet, as it's contingent upon Mala Noche being able to produce a $350 million equity offering in order to finance the deal.