Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s Silver Wheaton (TSX, NYSE:SLW) expects to raise at least $550 million by selling new shares after reaching an agreement with a syndicate of underwriters in a so-called bought deal.
The Vancouver-based silver and gold streaming company said that proceeds of the offering, which is scheduled to close around April 7, will be used to repay a line of credit drawn in November for the $900 million purchase of future silver production at the Antamina mine in Peru.
Streaming firms typically provide a chunk of cash upfront to mining companies to secure a “stream” of precious metals down the road. These sorts of deals have become increasingly popular of late, as miners have had great difficulty raising cash on stock and bond markets.
