According to the agreement Gold Wheaton will pay the first $10 million to Redcorp when the Vancouver B.C.-based junior has received certain environmental and operating permits, with the balance to be paid on a drawdown basis once Redcorp has expended all funds (other than the US$80 million drawdown funds) required to complete construction and commissioning of the Tulsequah Chief Mine and upon satisfaction of certain additional funding conditions.

In addition to the $90 million Gold Wheaton will pay Redcorp $400 per ounce of gold produced or the current market price per ounce of gold, whichever is less. Within three years of the agreement the Tulsequah Chief Mine must be producing a minimum of 75 percent of the gold that Redcorp set out in the feasibility study or processing a minimum of 1,800 metric tons per day with a recovery rate of not less than 70 percent over 120 days. If these requirements are not met Gold Wheaton could require Redcorp to pay back that percentage of the upfront payment which is equal to that portion of underproduction.

Terry Chandler, President and CEO of Redcorp said, “The Gold Sale Agreement is a critical step in the path allowing the company to bring the Tulsequah Chief Mine into production and is a key part of unlocking the potential of the Tulsequah Property. The revised capital estimate has been carefully and conservatively prepared. We are confident that the mine can be brought into production within the cost and timeline projected. Redcorp is pleased to be associated with the formation of Gold Wheaton as a significant future player in Canada’s mining industry.”