FNX and Gold Wheaton Renegotiate Terms of $50 Million Deferred Paymentadmin
FNX Mining Company Inc. and Gold Wheaton Gold Corp. announced that they have restructured the terms of the deferred $50 million payment from Gold Wheaton to FNX previously due on January 15, 2009, which was to have been satisfied through the issuance of Gold Wheaton share purchase warrants. Under terms of the revised transaction, Gold Wheaton will satisfy the deferred $50 million payment through the immediate issuance of 10 million common shares to FNX. The due date of the note will be extended for 18 months until July 16, 2010. The note may be repaid at either FNX’s or Gold Wheaton’s option through the issuance of that number of additional common shares of Gold Wheaton, as currently constituted, determined by dividing $50 million by the lesser of: (a) $1.00; and (b) the greater of: (i) the 20-day volume weighted average price of the Gold Wheaton common shares ending June 30, 2010; and (ii) $0.20. Completion of the transaction remains subject to acceptance by the TSX Venture Exchange.
FNX produces, develops and explores for nickel, copper, cobalt, platinum, palladium, and gold at its mining properties located in the prolific Sudbury mining camp, Ontario, Canada. The Company produces ore from its McCreedy West, Levack and Podolsky Mines, crushes and samples the ore on surface and trucks it to third party facilities to be milled, smelted, refined and marketed. FNX has a strong balance sheet, zero debt and current growth plans focused on higher margin, copper-precious metal ores.