Sandstorm Metals & Energy Ltd STTYF

towel time: Sandstorm Gold Announces . . .

[pogohere]

. . .to Acquire Sandstorm Metals & Energy

VANCOUVER, April 21, 2014 /CNW/ - Sandstorm Gold Ltd. ("Sandstorm Gold" or the "Company") (NYSE MKT: SAND, TSX: SSL) has entered into a definitive arrangement agreement ("Arrangement Agreement") with Sandstorm Metals & Energy Ltd. ("Sandstorm Metals") (TSX-V: SND) pursuant to which Sandstorm Gold will acquire all of the issued and outstanding shares (the "Sandstorm Metals Shares") of Sandstorm Metals other than the Sandstorm Metals Shares currently owned by the Company. The transaction will be implemented by way of a statutory plan of arrangement (the "Arrangement") under the Business Corporations Act (British Columbia).

Upon completion of the Arrangement, Sandstorm Gold will issue to each holder of a Sandstorm Metals Share 0.178 of a common share of Sandstorm Gold (each whole common share, a "Sandstorm Gold Share") and CAD$0.35 to be paid in cash (together, with the fractional Sandstorm Gold Share, the "Consideration"). The value of the Consideration represents a 43% premium over the closing price of the Sandstorm Metals Shares on the TSX Venture Exchange (the "TSXV") on April 21, 2014, the last day of trading prior to the announcement of the Arrangement, and based on the closing price of the Sandstorm Gold Shares on the Toronto Stock Exchange (the "TSX") of CAD$5.99 on April 21, 2014.  The terms of the Arrangement value Sandstorm Metals at $1.42 per share or approximately CAD$49 million. (more)

https://www.newswire.ca/en/story/1341795/sandstorm-gold-announces-plan-of-arrangement-to-acquire-sandstorm-metals-energy

[bob4977]

This is nothing but good news. I will have to do some math to see what I want to do with my shares but I like the idea that I will get some cash whether I decide to sell my SND shares now ( at a higher price) or just turn in my shares for SSL shares and get 35c per share in cash. Either way, this puts my SND investment in the black.

[Heiserman]

I've never been through a situation like this, can you clarify a few things for me.  What do you mean when you say "sell my SND shares now at a higher price"? Can we sell all our shares for $1.43 per? or are we forced to take the .178 of ssl and $.35? Thanks in advance.

[ol_griz]

"Nothing but good news." I haven't done the math either, Bob, but I think there's a distinct possibility we didn't all get in at a dollar! Rather, it's perhaps the best we could hope for, ending a very sad story that began with Great Expectations.

[bob4977]

Ol griz, I have quite a few stocks of my own that I am down a lot on. Making a little money on a resource stock seems the exception rather than the rule lately. I sold my SND shares at $1.33 today. I am just going to leave that in cash for a while as there is a possibility that there might be one more downdraft in gold and I want some dry powder in case that happens. And for those who bought SND

[michans]

can some one check my math. In the states with the US dollar and the share price of Sand currently at $5.15 the breakeven point would be to sell at $1.31 USD 1 SAND /.178 = 5.62 share of STTYF 5.62 STTYF x .39 (.35 CAD plus 10% rounded up) 5.15/5.62(sttyf) = .92 + .39 = 1.31 Am I off.....

[michans]

sorry my math is wrong .35 CAD is = to .32 US so the break even point is 1.24 with Sand at $5.15