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Gold Wheaton - from the founders of Silver Wheaton


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Vancouver, British Columbia: June 12, 2008 – Gold Wheaton Corp. (“Gold Wheaton”, currently known as Kadywood Capital Corp.) (TSX-V: KDC.H) is pleased to announce that it has entered into its first two transactions to acquire by-product gold and precious metal streams from producing and developing mines.


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Gold Wheaton has:

agreed to purchase 50% of the contained gold, platinum and palladium (the “gold equivalent ounces”) in ore mined and shipped from certain of the existing mining operations wholly-owned by FNX Mining Company Inc. (“FNX”) located in northern Ontario (the “FNX Gold Purchase Transaction”),

entered into a letter of intent with Redcorp Ventures Ltd. (“Redcorp”) pursuant to which Gold Wheaton has agreed to purchase 100% of the life of mine payable gold production from Redcorp’s Tulsequah Chief Mine located in British Columbia and any other mines within a defined project area (the “Redcorp Gold Purchase Transaction”), and

engaged Paradigm Capital Inc., as lead agent, with a syndicate including and GMP Securities L.P., Canaccord Capital Corp., BMO Capital Markets and Brant Securities Limited, to undertake a Cdn$200 million equity financing on a best efforts basis.


Based on the mine plans from FNX and Redcorp, Gold Wheaton expects to purchase approximately 30,000 ounces of gold equivalent production in 2008, growing to approximately 162,000 ounces in 2010. These two initial transactions should result in Gold Wheaton’s annual production averaging approximately 100,000 gold equivalent ounces for the next ten years.


“Gold Wheaton will be a pure play on gold and related precious metal by-product production. We will have immediate strong income and cash flow and it is our intent to grow this business aggressively. Upon completion of these initial two transactions and the proposed equity financing, Gold Wheaton will be well positioned for growth with current cash flow and a project pipeline,” commented David Cohen, Chairman and Chief Executive Officer of Gold Wheaton. “We welcome FNX as a major shareholder and look forward to their ongoing contribution as we grow the company.”


/more: http://www.goldwheaton.com/

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Analysts Applaud FNX's Launch of Gold Wheaton Corp.


Analysts are cheering the move by FNX Mining Company Inc. (FNX) to sell a chunk of its precious metals into the new gold-stream company Gold Wheaton Corp.


RBC Capital Markets analyst Adam Schatzker said the deal should be accretive for FNX as it will unlock the premium value that precious metals receive in the equity markets. FNX was not getting that premium before, but he expects that Gold Wheaton will.


He also noted that this deal could spur a takeover offer for FNX, a company that has been a rumored target in the past.


In a note to clients, he wrote:


We do not think this [Gold Wheaton] transaction would be desirable for a company like Vale Inco or Xstrata. (FNX mines the Sudbury Basin alongside those two larger rivals.)


At the same time, UBS Securities analyst Onno Rutten noted that monetizing FNX's precious metal production could unlock about C$2.11 in value per FNX share.


Mr. Rutten wrote:


According to our preliminary estimates, the value of cash on hand and the option value embedded in [Gold Wheaton] more than offsets the lower [precious metals] revenues.


Mr. Schatzker raised his target on FNX to C$36.50 a share (from $35.50) and Mr. Rutten lifted his target to C$34.00 a share (from C$32.00). They both recommend buying the stock


/see: http://seekingalpha.com/article/81386-anal...ld-wheaton-corp

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Great idea but got to wonder about the current stock price - fund raising at 50c including a warrant. If it pulls back to closer to this level could be interesting but for now at $1+ very richly priced.


This is not a pure gold play unlike Silver Wheaton (for silver) with FNX agreement for PGMs as well. Suspect this will get lost in the noise and the company will just be prompted as gold.


Royal Gold is operating on a similar model - concentrated on gold.

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Yes, it has left a huge gap that will one day be filled imo.

I have put my hand up for some (at a lower price)


Me too. I hope to have some of those 50 cents shares.

I do note that they come with a hold, and the hungry gap is still there, waiting to be filled


Close: $1.13 Change: +0.23 / volume: 1.18 million

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