Aurcana Corporation (TSX VENTURE:AUN) has reported the buy back of the Silver Stream Purchase Agreement entered into with Silver Wheaton Caymans, a wholly owned subsidiary of Silver Wheaton Corp. is now complete.
Consideration for the termination of the SPA consisted of a $US 25 million payment, and a final silver payment of 206,000 ounces. The security package on the assets of the La Negra Mine which were held by SW Caymans will be released accordingly.
Aurcana is pleased to have now removed the obligation of the sale of 50% of its silver production to SW Caymans, and can now receive the full benefits of 100% of its silver production at La Negra going forward. The Company is equally pleased that Silver Wheaton has continued to show its support for Aurcana by participating in the recently closed equity financing which was announced in a December 8, 2010 news release.
Lenic Rodriguez the Company's President and CEO states: "The buy back of the SPA represents a very significant accomplishment for Aurcana and allows the long life La Negra mine to fully participate in the upside to the silver market, substantially increasing its profit potential on an ongoing basis."
Source: Aurcana Corporation