Gold Wheaton completes C$260m fundraising
By: Liezel Hill
Published: 8th July 2008

miningweekly.com

Gold Wheaton, the gold-stream company unveiled last month by some of the key figures behind the hugely-successful Silver Wheaton, has completed a private placement for gross proceeds of C$260-million, the company said on Tuesday.

The Vancouver-based firm sold subscription receipts through a syndicate of agents that included Paradigm Capital as lead agent, together with Canaccord Capital Corporation and GMP Securities as cobookrunners, and including BMO Capital Markets and Brant Securities Limited.

The subscription receipts, as well as the shares and warrants to be issued when they are exercised, are subject to a four-month hold period which expires on November 9, the company said.

Gold Wheaton (currently called Kadywood Capital, after it was formed from a shell company by that name) will place the funds raised from the placement in escrow, until the conditions of its agreement with base-metals miner FNX Mining are satisfied, after which each subscription reciept will be automatically exercised and converted into one common share and one-half of a common share purchase warrant of Gold Wheaton.

Gold Wheaton said in June that it had agreed to buy half the gold, platinum and palladium metal mined from FNX Mining's mines in the Sudbury basin, in Canada, as well as all of the payable gold produced from the Tulsequah Chief mine, in British Columbia, owned by exploration and development firm Redcorp.

After upfront payments of $400-million and $90-million to FNX and Redcorp respectively, Gold Wheaton will pay the lesser of $400 per gold-equivalent ounce or the market price for the metals.

The FNX transaction is expected to close on or about July 15, the firm said.