Silver Wheaton Corp. is raising $500-million (U.S.) through a share offering that underlines the healthy appetite for deals in the mining finance sector.
Silver Wheaton, which buys streams of future production from miners, said on Wednesday that it is selling 30.1 million common shares at a price of $16.60 each through a bought deal led by RBC Capital Markets, BMO Capital Markets, CIBC Capital Markets and Bank of Nova Scotia.
The offering is priced at nearly a 6-per-cent discount to the $17.64 closing price of the shares in New York.
Silver Wheaton said proceeds of the offering will be used to repay a portion of the debt it took on last November, when it struck a $900-million deal to buy a silver stream on the Antamina mine in Peru from Glencore PLC.
Silver Wheaton is also granting the underwriters the option to buy up to an additional 4.5 million common shares on the same terms.
The Vancouver streaming company raised $800-million through a bought deal just over a year ago, but investors' interest in the sector appears far from sated.
Franco-Nevada Corp., another company active in the streaming business, raised $920-million in February.
Meanwhile, Shaun Usmar, the chief financial officer of Barrick Gold Corp., is leaving the gold miner to head up a new streaming venture backed by the U.S. hedge fund Elliott Management Corp.