Vancouver-based Silver Wheaton Corp. announced Feb. 5 it will pay Vale $1.9 billion to acquire a share of its gold production at some of its mines in Brazil and Sudbury.

It will also pay Vale 10 million Silver Wheaton warrants with a strike price of $65 and a term of 10 years.

The deal includes an amount of gold equal to 25 per cent of the life of mine gold production from its Salobo Mine, located in Brazil, as well as 70 per cent of the gold production, for a 20-year term, from some of its Sudbury mines.

"Partnering with Vale on two new gold streams represents a significant step forward for Silver Wheaton and for the streaming model as a whole,” said Silver Wheaton CEO Randy Smallwood in a press release.

“Not only does Silver Wheaton gain accretive gold ounces to further grow and diversify our company, but the precious metals streaming model has now been further endorsed by another one of the world's preeminent mining companies.

“Silver Wheaton is a proud Canadian company, and we are also excited to be adding another asset based here in Canada, our second one in less than a year."

Smallwood added that while the company has traditionally focused on silver, it has never been averse to adding “the right gold streams” to its portfolio.

“The world-class nature of the Sudbury operations and the Salobo mine, with its exciting expansion and exploration potential, along with the quality of Vale as an operating partner, convinced us that these assets would be ideal additions to Silver Wheaton's portfolio,” he said.

"Vale has a history of mining success spanning decades, and we are confident that Salobo and Sudbury will deliver substantial long-term value to both companies.”