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Silver Wheaton invests CDN$20 million in Ventana Gold

Published: 13:23 18 May 2010 EDT

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By Dorothy Kosich, Mineweb.com

Silver Wheaton has agreed to purchase 1.8 million units of Vancouver's Ventana Gold for Cdn$20.7 million (US $20.02 million) private placement financing at a price of C$11.50 per unit.

As part of the agreement, Silver Wheaton has the right of first refusal over any silver stream that Ventana may choose to sell from Ventana's La Bodega and Cal-Vetas gold projects or any future property within a five kilometer area of interest in the California-Vetas Mining District in the Department of Santander in Columbia.

Ventana CEO Steve Orr said, "This agreement not only adds to our treasury at minimal dilution to shareholders; it also provides an opportunity to leverage the potential silver stream from La Bodega as a source of financing for a future mining operation. We are pleased to welcome Silver Wheaton as a significant shareholder of Ventana."

Silver Wheaton CEO Peter Barnes said, "We are pleased to have acquired a right of first refusal on this very promising project. Drill results to date suggest that La Bodega has the potential to host a world-class gold deposit, with substantial silver by product credits. As the project advances, we look forward to working with Ventana towards completing a silver streaming agreement."

Mining entrepreneur Ross Beaty owns 16.9% of Ventana, while Brazil's richest man Eike Batista is Ventana's largest shareholder with a 17.5% stake.

Earlier this month Ventana signed agreements to pay US$48 million to acquire the assets of two privately-held  Colombian companies, Minera La Bodega and Minera Del La Baja, for all minerals rights, key surface rights, easements, equipment and facilities, and related intangible assets of both the La Bodega and La Baja properties.

Orr said the agreements "give us unencumbered access to an expanded land package for continued exploration and development of this prolific gold district."

Originally, Ventana was to finance the transaction with a portion of its current cash and a loan for US$20 million from "related parties of Ventana."

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