FNX Mining Company Inc.

FNX Mining Company Inc.

July 15, 2008 09:09 ET

FNX Completes Gold Wheaton Transaction

TORONTO, ONTARIO--(Marketwire - July 15, 2008) - FNX Mining Company Inc. (TSX:FNX) ("FNX" or the "Company") is pleased to announce that the Company has completed the previously announced transaction (please see FNX June 12, 2008 press release) with Gold Wheaton Gold Corp. (TSX VENTURE:GLW) ("Gold Wheaton", formerly known as Kadywood Capital Corp.) in which FNX has agreed to sell 50% of the contained gold, platinum and palladium metal in ore mined and shipped from the Company's: (i) PM and 700 Deposits at the McCreedy West Mine; (ii) Levack Footwall, Rob's and 1900 Deposits at the Levack Mine; and (iii) 2000 and North Deposits at the Podolsky Mine.

As of today's closing date, Gold Wheaton has:

- paid to FNX an up-front cash payment of Cdn$175 million

- issued to FNX 350 million Gold Wheaton common shares representing ownership of approximately 38% of Gold Wheaton's basic shares outstanding after the recent completion of Gold Wheaton's private placement of subscription receipts, which raised gross proceeds of Cdn$260 million

In addition, Gold Wheaton will pay to FNX:

- a deferred payment of Cdn$50 million in Gold Wheaton warrants, shares or cash six months from today

- on an ongoing basis, the lesser of (a) US$400 per gold equivalent ounce (subject to an inflationary adjustment three years from today) and (b) the then prevailing market price per ounce

The common shares of Gold Wheaton issued to FNX are subject to a statutory hold period which expires on November 16, 2008. Gold Wheaton has granted FNX a right to maintain its pro rata equity position in Gold Wheaton for 18 months provided that it holds at least 10% of the then outstanding Gold Wheaton common shares. The Gold Wheaton common shares were acquired for investment purposes only. Other than as agreed to as consideration for the transaction, FNX has no present intention to acquire further Gold Wheaton common shares and may, from time to time, increase or decrease its ownership of or control over securities of Gold Wheaton in response to market conditions, the business and prospects of Gold Wheaton or other factors.

About FNX

FNX operates, develops and explores its mining properties located in the prolific Sudbury mining camp, Ontario, Canada. The Company produces ore containing nickel, copper, cobalt, platinum, palladium and gold from its McCreedyWest, Levack and Podolsky Mines, crushes and samples the ore on surface and trucks it to third party facilities to be milled, smelted, refined and marketed. FNX has aggressive plans to significantly increase ore and metal production over the next few years. Well financed and generating strong cash flow, FNX is well positioned to implement its ambitious growth plans.

Forward-Looking Statement

This news release contains certain forward-looking statements, including statements about the sale by FNX to Gold Wheaton of certain assets. These forward-looking statements are subject to a variety of risks and uncertainties beyond the ability of FNX and Gold Wheaton to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, the statements about the deferred payment from Gold Wheaton to FNX and the ongoing payments per ounce to FNX are examples of forward-looking statements. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstance, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • FNX Mining Company Inc.
    John Lill
    President and CEO
    (416) 628-5929
    FNX Mining Company Inc.
    Ron Gagel
    Senior Vice President and CFO
    (416) 628-5929
    FNX Mining Company Inc.
    David Constable
    Vice President Investor Relations
    (416) 628-5929
    Email: info@fnxmining.com
    Website: www.fnxmining.com