Boston, MA 06/17/2014 (wallstreetpr) – Alexco Resource And Silver Wheaton Agreement
Alexco Resource Corporation (NASDAQ:AXU) feels great to lastly announce that it has come to a concord with Silver Wheaton Corporation (NASDAQ:SLW) to alter the Silver Purchase Agreement. The agreement is approximately six years old dated October 2, 2008. After the amendments the agreement would be presented in a way such that the fixed amount of $3.90 per ounce of silver streaming production payment would be replaced with a variable production payment. This variable production payment would be based on the blemish price of silver, that too with some noteworthy encouraging allusions for both Alexco and the Keno Hill Silver District in general.
The revised silver streaming agreement would apply to the 25% of Alexco’s payable silver, which is right now produced at the Keno Hill silver mining operations based in Canada. The changes made to the original Silver Purchase Agreement are conditional on the fact that Alexco would pay Silver Wheaton a handful amount of $20 million by December 13, 2014 or later as the parties decide. As per the resource news the revised agreement has been put to an end in order to reinstate the relations between the two firms regarding the production at the Keno Hill operations, along with gaining the confidence of Alexco shareholders.
Amended Agreement Highlights
The amended term would be of 10 years with an option for Alexco to extend the same for an additional 5 or 10 years with an additional payment of $10 million or $20 million correspondingly.
As per the modified agreement Silver Wheaton will have to pay Alexco Resource Corporation (NASDAQ:AXU) an utmost payout of $18.00 per ounce of silver delivery when the prices are $19.45 and a payment base of $3.90 per ounce when it rises to $35.00 or higher.
The limit for the mine and mill compensation test would be 400 tons per day, adjourned to one year after the delivery of first concentrate to the smelter.
