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Sandstorm Gold Ltd T.SSL

Alternate Symbol(s):  SAND

Sandstorm Gold Ltd. is a Canada-based precious metals-focused streaming and royalty company. The Company is focused on acquiring royalties and gold and other metals. The Company holds a portfolio of over 230 royalties, of which 41 of the underlying mines are producing. Its segments include Antamina, Aurizona, Blyvoor, Bonikro, Caserones, Cerro Moro, Chapada, Fruta del Norte, Hounde, Mercedes, Vale Royalties, and others. Antamina open-pit copper mine located in the Andes Mountain range of Peru, approximately 270 kilometers (km) north of Lima. Aurizona mine is in Brazil. The Blyvoor gold mine is located on the Witwatersrand gold belt, South Africa. The Bonikro gold mine is located in Cote d’Ivoire. Caserones open pit mine is in the Atacama region of Chile. Chapada mine is located 270 km northwest of Brasilia in Goias State, Brazil. Mercedes gold-silver mine in Sonora, Mexico. Black Fox mine and Froome mine are located in Ontario, Canada.


TSX:SSL - Post by User

Bullboard Posts
Post by denisonodon May 11, 2012 9:33pm
537 Views
Post# 19901708

Background Info of Deal....

Background Info of Deal....

The deal with Magellan replaces Magellan's deal announced Mar 30, 2012 with Global Royalty Corp. (GRC).  The .50 per share for 1 million shares simply replaces GRC's share purchase agreement.  Note that the volume weighed average in Q1 (prior to the Magellan-GRC announcement was ~.50.  Excluding the share purchase deal, RGC was getting 1.5% NSR at Cuiu Cuiu and some guarantees against the royalty.  SSL's is for $7.5 million for 1% NSR at Cuiu Cuiu, 2.5% at Coringa (which could go into production 2-3 years of more before Cuiu Cuiu), and first right of refusal on any streaming deals on both properties.  According to the Magellan presentation, Coringa could havea construction decision in 3Q13 and production as early as 1Q15.  Cuiu Cuiu construction decision probably will not come before 3Q15.  Best case scenario has the first income from this deal three years away.  However, this could could be just the foot in the door.  Both Magellan and Sandstorm are headquartered in Vancouver.  IMO, this could be just the start of a "big deal" with Magellan.  Sandstorm likes to scale in where they give the "company" some dollars and then exand/enlarge the "deal."  The NSRs could be supplemented or replaced with a streaming deal in a year or two.  Have a great weekend. GL

Bullboard Posts