January 26, 2009 / 10:25 PM / 10 years ago

UPDATE 1-Silver Wheaton to raise C$250 mln in bought deal

(In U.S. dollars unless noted)

TORONTO, Jan 26 (Reuters) - Silver Wheaton SLW.TO said on Monday it will sell at least C$250 million ($205 million) in stock by way of a bought-deal financing, and use the proceeds to pay down debt.

The Canadian company, which buys silver byproduct from other miners and resells it, joins the ranks of other precious metals miners that have shored up their balance sheets of late by selling stock.

The Canadian company said it will sell 31.25 million shares at a price of C$8.00 a share through a syndicate of underwriters led by Genuity Capital Markets and GMP Securities. It will use the proceeds to repay the company’s revolving debt facility and for general corporate purposes.

The underwriters also have an option to buy an additional C$37.5 million in stock.

Silver Wheaton’s shares closed at C$8.53 on the Toronto Stock Exchange on Monday.

After the deal goes through, Silver Wheaton will have about $20 million drawn from its $400 million revolving debt facility, which will be available to fund further growth opportunities, it said.

Gold-mining companies Agnico-Eagle (AEM.TO) , Kinross Gold (K.TO), Yamana Gold (YRI.TO), and Red Back Mining RBI.TO, have also issued stock in recent weeks to take advantage of resurgent interest in the precious metal as a hedge against slow growth and future inflation.

Silver XAG= was around $12 an ounce on Monday. The metal has risen about 34 percent since bottoming in November, but is well below last year’s highs above $20 an ounce.

$1=$1.22 Canadian Reporting by Cameron French; editing by Peter Galloway

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