Vale S.A. : Vale S.A. : Vale approves and completes agreements to sell a portion of the gold by-product stream Vale approves and completes agreements to sell a portion of the gold by-product stream Rio de Janeiro, February 28, 2013 - Vale S.A. (Vale) informs that after approvals from its Board of Directors, Vale has completed definitive agreements with Silver Wheaton Corp. (SLW), a Canadian company traded on the TSX and NYSE, to sell 25% of the payable gold by-product stream from the Salobo copper mine for the life of the mine and 70% of the payable gold by-product stream from certain Sudbury nickel mines for 20 years. The initial consideration of US$ 1.9 billion shall be received within the next 10 business days. In addition to the initial cash payment, Vale will receive 10 million warrants of SLW with a strike price of US$ 65 and a 10-year term. Vale will also receive future cash payments for each ounce (oz) of gold delivered to SLW under the agreement, equal to the lesser of US$ 400 per oz (plus a 1% annual inflation adjustment from 2016 in the case of Salobo) and the prevailing market price. As previously explained, the deal unlocks substantial value from our high quality base metals operations as it values the Salobo payable gold stream at US$ 5.32 billion plus payments of US$ 400 per oz upon delivery, given that no additional costs will be incurred by Vale to extract gold from copper concentrates produced by Salobo. The execution of our strategic plan leads us to remain strongly confident on the potential of our world-class base metals assets to create sizeable shareholder value through the cycles. For further information, please contact: +55-21-3814-4540 Roberto Castello Branco: firstname.lastname@example.org Viktor Moszkowicz: email@example.com Carla Albano Miller: firstname.lastname@example.org Andrea Gutman: email@example.com Christian Perlingiere: firstname.lastname@example.org Marcelo Correa: email@example.com Marcio Loures Penna: firstname.lastname@example.org Samantha Pons: email@example.com This press release may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under "Forward-Looking Statements" and "Risk Factors" in Vale's annual report on Form 20-F. Vale approves and completes agreements to sell gold ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Vale S.A. via Thomson Reuters ONE HUG#1682499
Vale S.A. : Vale S.A. : Vale approves and completes agreements to sell a portion of the gold by-product stream
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