SLW to acquire Silverstone in deal worth $190M

[chux03]

www.google.com/hostednews/canadianpress/article/ALeqM5jokrqi5VgFcc654yHCGvCNDgCq3Q

VANCOUVER, B.C. — Silver Wheaton Corp. (TSX:SLW) said Thursday it had reached a deal to purchase Silverstone Resources Corp. (TSXV:SST) in an all-stock deal valued at $190 million.

The Vancouver-based silver producer said the transaction would give Silverstone shareholders 0.185 of a Silver Wheaton share for each Silverstone share they own.

Silver Wheaton said the deal is worth $1.47 per share based on the company's closing stock price of $7.94 on the Toronto Stock Exchange Wednesday.

Silver Wheaton said the purchase agreement has the support of both Silverstone's board and primary shareholder, Capstone Mining Corp. (TSX:CS), which holds 24 per cent of the company.

Silverstone's board has unanimously approved the transaction and recommended that shareholders accept the offer. Pending shareholder and regulatory approval, the deal is expected to close by the end of May.

Silver Wheaton hailed the deal as a means of consolidating the company's position as an industry leader in silver streaming.

"This acquisition successfully consolidates the silver streaming industry and adds current production from low-cost, high-quality mines in politically stable jurisdictions," Silver Wheaton chief executive Peter Barnes said in a statement.

"Silverstone's core assets, the Minto, Cozamin and Neves-Corvo mines, have proven to be operationally strong and offer Silver Wheaton an immediate and significant increase in silver sales and cash flows, with good future upside potential."

Silverstone is a silver streaming company that holds agreements with both Capstone and Lundin Mining (TSX:LUN).


How do you spell.....MORE OUNCES???? This is GREAT news for shareholders in BOTH companies!!! :)

[chux03]

Silver Wheaton to Acquire Silverstone Resources

3/12/2009 3:33 AM ET

Quick Facts

(RTTNews) - Silver Wheaton Corp. (SLW.TO,SLW: News ) announced that it entered into a definitive agreement with Silverstone Resources Corp. (SST.V: News ) pursuant to which Silver Wheaton will acquire by way of a plan of arrangement all of the outstanding common shares of Silverstone in exchange for 0.185 common shares of Silver Wheaton for each common share of Silverstone.

Silverstone will become a wholly owned subsidiary of Silver Wheaton.

The number of Silver Wheaton shares received upon exercise, and the exercise price, of Silverstone's outstanding options and warrants, will be adjusted proportionately to reflect the share exchange ratio. On a pro forma fully diluted basis Silver Wheaton will be held by approximately 93% of existing Silver Wheaton shareholders and 7% by existing Silverstone shareholders. The total number of Silver Wheaton common shares outstanding will be approximately 311 million, on a pro forma basis.
The transaction is expected to be accretive for Silver Wheaton shareholders on all key metrics. It also enhances Silver Wheaton's immediate production and cash flow profile by adding 2009 annualized production of approximately 2.3 million ounces of silver and 31 thousand ounces of gold.

www.bullionbullscanada.com/index.php?option=com_content&view=article&id=340:silver-wheaton-corp&catid=55:research-reports&Itemid=110

[blox87]

I have an etrade brokerage account and they have recent news releases pertaining to stocks I own. I always see these Target Price perdictions and often wonder where these " experts " come up with such different numbers for the Target. Either way it looks as though all of them agree that the price is going up which is good lol :smile:





Silver Wheaton Tgt Raised To C$19.75 From C$19.50 By Salman >SLW

Mar 13, 2009 12:53:45 (ET)




Silver Wheaton Tgt Raised To $12 From $11.50 By Cormark >SLW

Mar 13, 2009 08:43:21 (ET)



Silver Wheaton Tgt Raised To $9.50 From $9 BY TD >SLW

Mar 13, 2009 07:35:21 (ET)

[chux03]

I don't know about their numbers but I like their subject, SLW and in fact, just bought more shares on Friday after I sold another silver junior to consolidate into holding only PM producers.
Also, I get to look at a couple of newsletters that are also pretty friendly towards Silver Wheaton and they like them as well.
Probably about the only place you'll read a "dispariging word" about them is from the folks who owned Silverstone Resources stock, which is the company they just bought out, over on the Silverstone board over at:

www.stockhouse.com/Bullboards/SymbolList.aspx?s=SST&t=LIST

Now to listen to them over there and it sounds like the "crime of the century" but how they could compare SST to SLW and then think they were getting ripped off is a little extreme but then again, what shareholder that got bought out wouldn't feel like that NO MATTER WHAT PRICE THEY PAID? Anyway, it's been given the thumbs up by the institutional investors and that's what counts. Maybe there will be a competing bid but I'm guessing that the SST buyout will continue on schedule.

Here's an opinion from Blackstone Capital:

Silverstone Acquisition is a
Home Run on all Metrics
Executive Summary
We believe Silver Wheaton's (SLW-TSX) acquisition of
Silverstone Resources (SST-TVX) is a very astute move for
many reasons: (i) it eliminates the company's primary
competitor in the silver stream business, (ii) it acquires
three silver streams from low-cost copper mines in
politically stable regions, and (iii) it is accretive on EPS,
CFPS, EV/oz of reserve, EV/oz of resource, and EV/oz of
production. The addition of Silverstone's 4.5 million
ounces of silver equivalent sales in 2009 should increase
Silver Wheaton's sales to 20.3 million ounces (full year),
growing to 27 million ounces in 2010 and over 32 million
ounces by 2012.
Our pro forma NAV declines by only $0.05 to $9.70 as
Silver Wheaton, which was trading at 0.69 times NAV
before the acquisition, is paying 0.74 times NAV for
Silverstone. The deal increases our EPS by 15% in 2009
and 8% in 2010, and our CFPS by 13% in 2009 and 6% in
2010. At our new estimates, and maintaining our 1.50 times
NAV and 10 times 2010 CFPS target multiples, our 12-
month target price increases to C$13.50 (from C$12.50).
We are maintaining our BUY recommendation on Silver
Wheaton and believe it continues to represent one of the
best exposures to a higher silver price and a re-rating on
the SST shares as investors flock to the low-risk growth
provided by the assets. From a Silverstone shareholder
perspective, this deal (i) provides a decent premium, (ii)
brings excellent exposure to a higher silver price and a
potential re-rating, and (iii) avoids the need to come to
market to strengthen a weak balance sheet. We believe
another bidder is unlikely, but the premium may
ultimately need to be bumped to get the deal done.

[chux03]

Up a BIG .81 (and my SLW shares went up over $2000 today) a share and all since noon on the west coast. There were several other PM stocks that were also UP BIG today as well.
Just remember, for years SLW shares were roughly about the price of an ounce of silver. Not exactly but close enough that if you held up a chart of how silver looks, SLW would look pretty much like that. Anyway, today should have given you a taste of what a real run-up could be like though we'll have no way of knowing if it's sustainable till tomorrow or even later. While today's action was instigated by the moves of the Fed, it could move farther and faster if there was some kind of int'l calamity as well. When they talk about volitility in the PM markets, today earlier was just a little taste of what may be to come.
You ready??

[chux03]

OH YES IT DOES!!!! I'm UP over 26% in my position in Silver Wheaton since buying in October 1, 2008 and averaging down when I could do it, while it was down. And as a matter of fact, it's rise has brought my brokerage account....the WHOLE thing, back into the green, signifying POSITIVE territory. And to be truthful, I haven't seen that for over a year now.

I don't need to mention what's going to happen to this one should the price of silver continues up, do I?? Oh and that reminds me.....according to their latest (February) presentation available there on their website at www.silverwheaton.com there on page 21, it says "$15 silver will enable SLW to have their debt paid off by December 2009". So if you hear anyone say they like SLW EXCEPT that they have lots of debt, you're now armed with the knowledge to....correct them. This is a GREAT INVESTMENT in an OUTSTANDING COMPANY, no doubt about it. And if you're into silver, you should be into SLW.