Sandstorm Gold Announces Colossus Restructuring Sandstorm Gold Announces Colossus Restructuring
Vancouver, British Columbia | January 14, 2014
Sandstorm Gold Ltd. (“Sandstorm Gold” or “Sandstorm”) (NYSE MKT: SAND, TSX: SSL) announces that Colossus Minerals Inc. (“Colossus”) has approved a proposal received from Sandstorm and a group of holders of Colossus Convertible Gold Linked Notes (the “Gold Linked Notes”). The terms of the proposal provide for a restructuring of Colossus’ capital structure through the conversion of its Gold Linked Notes and its precious metals purchase agreements with Sandstorm into equity (the “Restructuring”). Colossus has filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada), which is intended to enable Colossus to pursue the Restructuring and a sale process with the benefit of creditor protection and under Court-supervision.
As part of the Restructuring, Sandstorm has agreed to cancel its gold and platinum purchase agreements (previously announced on September 19, 2012), in exchange for a 1.6% net smelter returns royalty (“NSR”) and common shares of Colossus. If the Restructuring is completed, Sandstorm expects to own approximately 31% of the outstanding common shares of Colossus.
Sandstorm Metals & Energy Ltd. (“Sandstorm Metals”), via a back-to-back agreement with Sandstorm Gold, held a palladium purchase agreement (the “Palladium Stream”) with Colossus and has agreed to cancel the Palladium Stream in exchange for a 0.4% NSR and approximately 8% of the outstanding common shares of Colossus.
For more details on the Colossus Restructuring, please visit www.colossusminerals.com.