Sandstorm Metals & Energy Ltd STTYF

RE: NEWS -- FORMER NDX

[unlimited_aw]

Let's see, if the deal goes as planned, Sandstorm will convert the current $ 30 million streaming deal into a new one, where they will get 200 million shares for the first $ 10 million, a $ 10 million debenture, eventually to be converted in 100 million shares for the second $ 10 million and a new royalty of $ 4.5 per ton for the remainign $ 10 million.

The royalty was 25% of the first 3.8 million ton at $ 65. With current prices at $ 160 a ton, Sandstorm would get $ 95 per 4 ton produced. The new royalty is $ 4.5 per ton or, $ 18 per 4 ton. It is a lower amount and no upward potential in case coal prices will rise, but neither downward risk neither.

The biggest gain is however in the shares Sandstorm will get. With currently 79 million shares outstanding,  Sandstorm will be holding a 71% interest in the new Novadx as they will get 200 million shares (200/279=71%) . If things go bad, they will get thus 71% of the assets in case of a breakup. If things go well, warrants will be converted and the remaining share in the new Novadx hold by Sandstorm will be 300 divided by 779 (38%) or 400 divided by 879 (45%). In both cases this will more then compensate the loss Sandstorm has to take on the lower royalty. A very impressive job !