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FNX Mining Company Inc. and Gold Wheaton Gold Corp.: FNX and Gold Wheaton Renegotiate Terms of $50 Million Deferred Payment

^{Published on 2008-12-08 08:02:49 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2008) - FNX Mining Company Inc. (TSX:FNX) ("FNX" or "the Company") and Gold Wheaton Gold Corp. (TSX VENTURE:GLW) ("Gold Wheaton") announced today that they have restructured the terms of the deferred $50 million payment from Gold Wheaton to FNX previously due on January 15, 2009, which was to have been satisfied through the issuance of Gold Wheaton share purchase warrants. Under terms of the revised transaction, Gold Wheaton will satisfy the deferred $50 million payment through the immediate issuance of 10 million common shares to FNX. The due date of the note will be extended for 18 months until July 16, 2010. The note may be repaid at either FNX's or Gold Wheaton's option through the issuance of that number of additional common shares of Gold Wheaton, as currently constituted, determined by dividing $50 million by the lesser of: (a) $1.00; and (b) the greater of: (i) the 20-day volume weighted average price of the Gold Wheaton common shares ending June 30, 2010; and (ii) $0.20. Completion of the transaction remains subject to acceptance by the TSX Venture Exchange.

About FNX

FNX produces, develops and explores for nickel, copper, cobalt, platinum, palladium, and gold at its mining properties located in the prolific Sudbury mining camp, Ontario, Canada. The Company produces ore from its McCreedy West, Levack and Podolsky Mines, crushes and samples the ore on surface and trucks it to third party facilities to be milled, smelted, refined and marketed. FNX has a strong balance sheet, zero debt and current growth plans focused on higher margin, copper-precious metal ores.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, the number of shares of Gold Wheaton that FNX receives in satisfaction of the deferred $50 million payment may vary or may be subject to future market conditions and in particular, the price of Gold Wheaton common shares. Accordingly, readers should not place undue reliance on forward-looking statements.