VANCOUVER (CP) -- Alexco, which has a preliminary plan to begin production at the Yukon Territory property in 2010, will use the funds to build a mine-mill operation 330 kilometres north of Whitehorse.
Silver Wheaton will make two up-front payments totalling $15 million within 30 to 90 days. Alexco will use that money for ongoing underground development, drilling and continued exploration.
The remaining $35 million will be paid on a monthly draw-down basis to build out the Bellekeno mine infrastructure and processing facility, starting once Alexco decides to go ahead with the project and subject to certain conditions, the companies said.
Silver Wheaton is not required to contribute to further capital or exploration expenditures and Alexco has provided a completion guarantee.
Silver Wheaton said it would pay for the transactions from its existing credit facilities.
Its shares traded at $C8.32, up 82 cents or eight per cent, and Alexco's fell two cents or 1.1% to $1.83 on the Toronto Stock Exchange.
(c) The Canadian Press