RE:Cash on Hand at Sandstorm
I was in Sandstorm, early Sandstorm when it was Sandstorm Resources. Nolan Watson knows how to help a company get to Production. I dug through some old saves and will paste this one from 2010 ... I think we all know this mine will move to Production...paste below:
And what about the Luna Gold? Is this transaction good or bad for its shareholders?
Well, there is upside and downside to the transaction, but in the end, the ability to finance the last leg of a mine to production without further share dilution is definitely within the interests of the company's shareholders.
And the structure is arguably preferable to debt, which may trigger additional dilution in the event of commodity prices dropping below a set level, or if there are delays in mine development. Those risks are less onerous in the Sandstorm structure because the costs are known and the timeline to development less relevant.
So how do other companies get financed by Sandstorm? Well, it really comes down to the size of the financing required, the commodities being mined, and the political risk associated with the country in which the asset is located.
There are two things we look for in potential transactions, said Watson. "We look at a minimum of $5 million because its really not worth our time to do anything smaller, and on the high side we could look at $35 - 40 million dollars, and in some cases perhaps as much as $50 million, which I would define as our cap right now.
Our sweet spot right now on the deals we're currently looking at is $15 million to $20 million.
Ours is really part of the whole financing solution, we're always willing to participate as part of a syndicated financing, and so we bring a flexibility option to companies who might be reluctant to finance through equity entirely due to a depressed share price."
Find out more by visiting the company online at www.sandstormresources.com.