Gold Wheaton Gold Corp.

Gold Wheaton Gold Corp.

November 30, 2009 08:00 ET

Gold Wheaton Announces Second Drawn Completing C$100 Million Debt Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2009) -


Gold Wheaton Gold Corp. (TSX VENTURE:GLW) ("Gold Wheaton" or the "Company") is pleased to announce that it has closed a second draw down in the amount of C$50 million of the aggregate C$100 million debt financing with Sprott Asset Management LP ("SAM"), on behalf of certain funds managed by SAM, as previously announced on May 26, 2009. Pursuant to a note indenture and second supplemental note indenture, the notes bear interest at the rate of 10% per annum and have a five year term. In connection with the second draw down, the Company has issued an additional 62.5 million warrants exercisable at C$0.50 per share for five years from the date of closing. The notes and the warrants associated with the draw down have a hold period that expires on March 27, 2010.

Gold Wheaton was advised by Paradigm Capital Inc. who received a cash fee of 1.5% of the gross proceeds of the offering as at the completion of the first draw down.

The net proceeds of the debt financing will be used for general corporate purposes, including future gold stream acquisitions.

Gold Wheaton is a gold company with 100% of its operating revenue from the sale of gold and precious metals produced by others. The Company is actively pursuing further growth opportunities.

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of applicable Canadian securities legislation. 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 Gold Wheaton 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, future prices of gold or uranium, the timing and amount of estimated future production and the costs thereof; capital expenditures; the availability of any additional capital required to bring future projects into production; future prices of commodities; the failure of plant, equipment or processes to operate as anticipated; accidents; labour disputes; delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities; currency fluctuations, as well as those factors discussed in the section entitled "Description of Business - Risk Factors" in Gold Wheaton's Annual Information Form dated August 19, 2008 as filed on SEDAR. Although Gold Wheaton 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

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