Chap Mercantile in the news:
Wheaton unit to buy silver output
By PATRICK BRETHOUR
Monday, November 15, 2004 - Page B6
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CALGARY -- The newly minted unit of Vancouver-based Wheaton River Minerals Ltd. is striking its first deal to buy silver production, following the path taken by its parent to buy gold assets.
"The plan is to aggressively look for other sources of silver," said Ian Telfer, Wheaton River's chairman and chief executive officer, and a director at subsidiary Silver Wheaton, also called Chap Mercantile Inc. He said future deals could include debt; the subsidiary is currently debt-free and has no hedges.
Silver Wheaton will buy all of the silver production from Sweden's Zinkgruvan Mining AB for $75-million (U.S.), including a cash payment of $50-million, 30 million common shares and 30 million warrants to purchase common shares. Each warrant can be converted into a common share for 80 cents until Aug. 5, 2009.
The company will buy silver at either the prevailing market price or at $3.90 an ounce, whichever is less.
In mid-October, Wheaton River closed a deal to spin off its silver production to Chap Mercantile Inc., giving the Vancouver-based company a 75-per-cent stake in that business.
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