Silverstone Resources Corp. (“Silverstone”) (TSX-V: SST)
and Silver Wheaton Corp. (“Silver Wheaton”) (TSX, NYSE: SLW)
today announced that they have entered into a definitive
agreement pursuant to which Silver Wheaton will acquire
by way of a plan of arrangement all of the outstanding
common shares of Silverstone in exchange for 0.185 common
shares of Silver Wheaton for each common share of Silverstone.
Based on the 20-day volume-weighted average of Silver Wheaton’s common shares of C$8.58, the transaction value per Silverstone common share is C$1.59, and the total transaction value is approximately C$206 million. This represents a premium of 40% based on the 20-day volume-weighted average of both companies’ common shares on the TSX for Silver Wheaton and the TSX Venture for Silverstone. Silverstone's board of directors and officers along with Capstone Mining Corp. (“Capstone”), its largest shareholder (representing an aggregate of 30.5 million shares (24%) of Silverstone, fully diluted), have entered into support agreements in respect of the transaction. Based on a recommendation from a special committee of independent directors of Silverstone (the “Special Committee”) the unconflicted members of Silverstone's board of directors have unanimously supported the transaction and recommend the shareholders of Silverstone vote their shares in favour of the offer.
To read the complete news release, please see our web site at
http://silverstonecorp.com/_resources/news/NR_March_11_2009.pdf