RDA, coal on the move, get in while cheapROYAL COAL CORP. ANNOUNCES ADVANCE PAYMENTS FROM SANDSTORM METALS & ENERGY ON ROYALTY AGREEMENT AND COAL PURCHASE AGREEMENT
In accordance with the royalty and coal purchase agreements with Sandstorm Metals & Energy Ltd. previously announced in Stockwatch on Nov. 26, 2010, Sandstorm Energy has advanced a portion of the agreed upon upfront payments to Royal Coal Corp.
Sandstorm Energy has:
Advanced $2-million (U.S.) of the $11-million (U.S.) total upfront coal purchase payment committed to Royal Coal (in accordance with the coal purchase agreement, the remaining $9-million (U.S.) will be remitted upon completion of certain financing conditions which is expected by February, 2011;
Completed the purchase for $3-million (U.S.) of the 2.7-per-cent gross royalty on all of Royal Coal's current assets (until Sandstorm Energy has been paid a total amount of $4.5-million (U.S.), and thereafter a 1.35-per-cent gross royalty).