Big spending Wheaton picks up Amapari

Vancouver-based Wheaton River Minerals (Amex: WHT) reported the acquisition for some US$105mn of all outstanding shares of EBX Gold, which owns the Amapari gold project in Brazil's Amapa state. The Canadian company is confident Amapari can be brought into production in 2005, increasing its annual production in 2006 to an approximate total of 900,000oz of gold equivalent, Wheaton River said in a statement. Amapari contains 1.7Moz in the measured and indicated resource category, said Wheaton River, adding the property has an additional 1Moz in the inferred category and "extensive exploration potential." The purchase price comprises US$25mn in cash, 33 million Wheaton River common shares and 21.5 million Wheaton River series B common share purchase warrants. Wheaton River has current production of 500,000oz gold equivalent at a cash cost of about US$100/oz. The company has been on a spending spree over the last 18 months with the acquisition of the Luismin gold mines in Mexico in June last year, and Australia's Peak gold mine, a 37.5% stake in the Alumbrera gold-copper mine Argentina and the advanced Los Filos gold project, and a 21.2% stake in the El Limon gold deposit, both in Mexico's Guerrero state, all this year.