Vale S.A. : Vale S.A. : Vale approves and completes agreements to sell a portion of the gold by-product stream

   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: roberto.castello.branco@vale.com

                                 Viktor Moszkowicz: viktor.moszkowicz@vale.com

                                    Carla Albano Miller: carla.albano@vale.com

                                         Andrea Gutman: andrea.gutman@vale.com

                         Christian Perlingiere: christian.perlingiere@vale.com

                                      Marcelo Correa: marcelo.correa@vale.com

                                    Marcio Loures Penna: marcio.penna@vale.com

                                         Samantha Pons: samantha.pons@vale.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

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Source: Vale S.A. via Thomson Reuters ONE
HUG#1682499
 
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