Silver Wheaton ( SLW ) announced yesterday that it has entered into a binding term sheet to acquire Vale's gold production from two mines located in Brazil and Canada. In addition, Silver Wheaton will pay the lesser of $400 or market price for each ounce of gold produced, subject to a 1% inflation related adjustment after 2016 for Salobo. This deal will be valid for 20 years and production will accrue retroactively to Silver Wheaton as of January 1, 2013, even as the term sheet remains subject to negotiations and approval by Vale's board of directors.