On October 3, 2008, Alexco Resource Corp. (TSX:AXR, AMEX:AXU) announced that it had entered into a silver purchase agreement with Silver Wheaton Corp. (NYSE, TSX:SLW) under which Silver Wheaton will purchase 25% of the life of mine silver produced by Alexco from its Keno Hill Silver District in Canada's Yukon Territory.

Alexco will receive an up-front deposit payment from Silver Wheaton of US$50 million, plus a further payment of the lesser of US$3.90 (increasing by 1% per annum after the third year of full production) and the prevailing market price for each ounce of silver delivered. US$15 million of the up-front payment will be made in two tranches within the next 30 to 90 days as certain conditions are completed and will fund ongoing underground development, definition drilling and continued exploration of the Bellekeno resource as well as other work required to refine and complete engineering studies. The remaining US$35 million will be paid on a monthly draw-down basis to build out the Bellekeno mine infrastructure and processing facility, commencing once Alexco has made a positive development decision and subject to certain other conditions including Alexco having sufficient committed funds available to complete construction and achieve production within specified time frames.

Alexco was advised in this transaction by Josh Lewis of Fasken Martineau.