Mining Stocks News - Gold Wheaton (TSX.V:GLW ) Enters Into Gold Purchase Agreement With Respect to First Uranium's Ezulwini Gold and Uranium Mine

Mining Stocks News - Gold Wheaton (TSX.V:GLW ) Enters Into Gold Purchase Agreement With Respect to First Uranium's Ezulwini Gold and Uranium Mine


VANCOUVER, BRITISH COLUMBIA--- Nov. 6, 2009 - Gold Wheaton Gold Corp. (TSX.V:GLW ) is pleased to announce that Gold Wheaton (Barbados) Corporation ("Gold Wheaton"), a wholly-owned subsidiary of GWC, has signed a definitive agreement with First Uranium Corporation (TSX:FIU - News; JSE:FUM) ("First Uranium") and its subsidiary Ezulwini Mining Company (Proprietary) Limited ("EMC"). Gold Wheaton will purchase seven percent of the life of mine gold production from EMC's mining right over the Ezulwini Mine (the "Transaction") and which covers an area of approximately 3,718 hectares, located approximately 40 kilometres from Johannesburg, in the Province of Gauteng, in the Western portion of the Witwatersrand basin, South Africa.

The Transaction is expected to close in late November 2009.

Under the terms of the Transaction, Gold Wheaton will pay First Uranium US$50 million on closing and will make an ongoing payment equal to the lesser of US$400 per delivered ounce and the prevailing spot price of gold, subject to an annual inflation adjustment of one percent, starting on the fourth anniversary of closing. Gold Wheaton will not be required to contribute to any capital or exploration expenditures in respect of the Ezulwini Mine.

EMC has redeveloped the old North Section of the Western Areas gold mine (in operation since the early 1960s) with a new mining area being opened up and a new gold and uranium processing plant recently constructed and commissioned. The operation has extensive existing infrastructure, relatively shallow mining operations and by-product uranium credits. The mining and processing operations are currently ramping up to design production levels.

"With this new gold stream from Ezulwini, one of First Uranium's two South African operations, we add an average of approximately 25,000 ounces per year over the life of the operation to our existing annual production. The long life gold and uranium mine should be at the lower end of the production cost curve and has significant potential upside for additional production from its large resource base. The transaction will be financed from cash on hand, leaving us well funded to continue to grow," commented David Cohen, Chairman and CEO of GWC. "As the mine is currently ramping up production, we expect to receive immediate additional production from the transaction, a guaranteed minimum delivery of 16,500 ounces in 2010 and 19,500 ounces in 2011 and an average annual delivery of approximately 26,000 ounces thereafter. We are pleased to solidify our existing relationship through this second transaction with First Uranium, adding to the initial agreement with respect to their Mine Waste Solutions project in November 2008."

Closing of the Transaction is subject to receipt of all required governmental, regulatory and stock exchange approvals and third-party consents.

GWC will also call and hold a special meeting of shareholders to approve a consolidation of the common shares of GWC on the basis of 1 new common share for every 10 issued and outstanding common shares. No fractional shares will be issued and any fractions of a share will be rounded down to the nearest whole number of common shares.

At today's date, GWC has 1,430,496,668 issued and outstanding shares and post-consolidation, GWC will have 143,049,666 issued and outstanding shares. Upon the consolidation outstanding stock options and warrants will, in accordance with their terms, be exercisable into post-consolidation shares at appropriately adjusted exercise prices.

The share consolidation is subject to shareholder approval and TSX Venture Exchange acceptance.

GWC will release third quarter results on Tuesday November 10th, 2009 after the market closes and will host a telephone conference call, Thursday November 12th, 2009, at 10:00am PST (1:00pm EST) to discuss the results. The impact of the Ezulwini transaction will also be discussed at that time. The conference call may be accessed by dialing 1-800-319-4610 1-800-319-4610 in Canada and the United States, or +1-604-638-5340 +1-604-638-5340 internationally.

The conference call will be archived for later playback until Thursday November 19th, 2009 and can be accessed by dialling +1-604-638-9010 +1-604-638-9010 or 1-800-319-6413 1-800-319-6413 and using the pass code 3504 followed by the number sign, #.

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of gold, platinum or palladium, the timing and amount of estimated future production, costs of production, reserve determination reserves conversion rates and the proposed consolidation involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GWC or First Uranium to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other risks, risks related to the integration of acquisitions, risks related to international operations, risks related to joint venture operations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold, platinum or palladium, as well as those factors discussed in the section entitled "Description of Business - Risk Factors" in GWC's Annual Information Form dated August 19, 2008 as filed on SEDAR. Although GWC has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the content of this news release.
www.goldwheaton.com



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