03/02/2015 06:10 EST | Updated 05/02/2015 05:59 EDT

Silver Wheaton pays $900M for additional 25 per cent stake in Vale mine

VANCOUVER - Silver Wheaton Corp. (TSX:SLW) says it will pay $900 million for the right to buy an additional 25 per cent of future gold production from Vale SA's Salobo operations in Brazil.

Under the deal, the Vancouver-based company will be permitted to purchase up to half of all the gold produced at the mine during its lifetime.

The agreement will permit Silver Wheaton to purchase an ounce of gold for less than $400 or the market price at production.

The price of bullion closed at US$1,208.20 an ounce on Monday.

Vale has not committed to delivering any specific production volumes at Salobo.