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
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:
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
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(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Vale S.A. via Thomson Reuters ONE
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