UPDATE 1-Gold Wheaton to buy gold from First Uranium

* To buy gold from First Uranium's South Africa unit

* To pay $50 mln initially to Ezulwini Mining Co

* Says expects immediate additional production

* Guaranteed min. delivery of 16,500 ounces in 2010

Nov 6 (Reuters) - Canada's Gold Wheaton Gold Corp (GLW.V) said its Barbados unit agreed with First Uranium Corp (FIU.TO) to buy gold from its South African unit for an initial payment of $50 million.

Gold Wheaton will buy 7 percent of the life of mine gold production from Ezulwini Mining Co's mining right over its Ezulwini mine, which covers about 3,718 hectares, in the Gauteng province of South Africa.

Under the deal, which is expected to close in late November, Gold Wheaton will pay First Uranium $400 per ounce on each gold delivery, or the prevailing spot price of gold, whichever is lower.

Gold Wheaton said it will not be required to contribute any capital or exploration expenditures to the Ezulwini mine.

The acquisition will add an average of about 25,000 ounces per year to Gold Wheaton's existing annual production, it said.

"We expect to receive immediate additional production from the transaction, a guaranteed minimum delivery of 16,500 ounces in 2010 and 19,500 ounces in 2011 and an average annual delivery of approximately 26,000 ounces thereafter," Gold Wheaton Chief Executive David Cohen said in a statement.

Gold Wheaton shares were up 1.5 Canadian cents at 30 Canadian cents Friday morning on the Toronto Venture Exchange, while First Uranium shares were up 4 Canadian cents at C$2.79 on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Unnikrishnan Nair)