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Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Post by elmothefearlesson Mar 01, 2013 4:10pm
380 Views
Post# 21064619

Our next deal

Our next deal

My money is on a deal with CZN, Canadian Zinc.  They are waiting for their final permit that is coming mid 2013.  Former producing mine with about 26 years of resources (11 years of reserves).  They have copper, zinc and lead, and NW suggested the next deal would be in the base metal space.  There is gold there as well, so SSL could come in as well.  Total CAPEX is ~$150 million, but includes a $30 million contingency.  Odds are CZN could get financing from a bank for $50 - $60 million, SND/SSL may come in for $30 - $40 million, which would leave about $20 - $40 million for CZN to raise, which seems quite manageable.

 

I won't take credit for this idea, someone else proposed it a few months ago.  Just kept the company and noticed that nothing has gone awry with their permitting process thus far.  Plus they've had some decent exploration success.

 

A deal with CZN would correspond nicely with Donner... first cash flows of Donner would be coming on stream in Q2, meaning we should have a re-rating back to $0.50 or $0.60 by then, plus a LOC.  Any cash necessary for a deal could come from a combination of a LOC and/or private placement.

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