Gold Wheaton Gold Corp.
TSX VENTURE : GLW

Gold Wheaton Gold Corp.

December 08, 2009 10:16 ET

Gold Wheaton Completes Gold Purchase Agreement With First Uranium's Ezulwini Gold and Uranium Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2009) - Gold Wheaton Gold Corp. (TSX VENTURE:GLW) ("GWC") is pleased to announce that Gold Wheaton (Barbados) Corporation ("Gold Wheaton"), a wholly-owned subsidiary of GWC, has completed a gold purchase transaction with First Uranium Corporation (TSX:FIU)(JSE:FUM) ("First Uranium") and its subsidiary Ezulwini Mining Company (Proprietary) Limited ("EMC") previously announced on November 5, 2009. Gold Wheaton has purchased seven percent of the life of mine gold production with a minimum delivery of 16,500 and 19,500 ounces of gold for 2010 and 2011 respectively from EMC's Ezulwini Mine (the "Transaction") located approximately 40 kilometres from Johannesburg, in the Western portion of the Witwatersrand basin, South Africa.

Gold Wheaton has paid First Uranium US$50 million and will make an ongoing payment equal to the lesser of US$400 per delivered ounce and the prevailing spot price of gold, subject to an annual inflation adjustment of one percent, starting on the fourth anniversary of closing. Gold Wheaton will not be required to contribute to any capital or exploration expenditures in respect of the Ezulwini Mine.

"We are very pleased to have closed this second transaction with First Uranium and look forward to receiving growing gold deliveries from this project as well as their Mine Waste Solutions project," commented David Cohen, Chairman and CEO of GWC. "GWC remains well funded to consider opportunities to develop our gold stream portfolio."

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of gold, platinum or palladium, the timing and amount of estimated future production, costs of production, reserve determination and reserves conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GWC or First Uranium to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other risks, risks related to the integration of acquisitions, risks related to international operations, risks related to joint venture operations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold, platinum or palladium, as well as those factors discussed in the section entitled "Description of Business - Risk Factors" in GWC's Annual Information Form dated August 19, 2008 as filed on SEDAR. Although GWC has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the content of this news release.

Contact Information

  • Gold Wheaton Gold Corp.
    David Cohen
    Chairman and Chief Executive Officer
    +1 (778) 373-0107