VANCOUVER, April 5, 2017 /CNW/ - Sandstorm Gold
Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) is pleased to announce that Luna Gold Corp. ("Luna Gold") and JDL
Gold Corp. ("JDL Gold") have combined their businesses to create Trek Mining Inc. ("Trek"). As part of the business combination,
a non-brokered private placement financing was completed for gross proceeds of C$83,419,172.
Trek is well-funded with approximately C$113 million in cash and no cash debt, and is advancing
the Aurizona gold project ("Aurizona" or the "Aurizona Project") to production. A feasibility study is nearing completion and the
first gold pour at Aurizona is targeted for year-end 2018. Near-mine and district-scale exploration is also underway with a focus
on the drill-ready targets directly along strike of the existing reserves and resources at Aurizona's past producing Piaba open
pit. The greenfields exploration ground adjacent to the Aurizona Project is under option to AngloGold Ashanti Holdings plc
("AngloGold").
Sandstorm holds a 3% to 5% sliding scale net smelter returns ("NSR") royalty on Aurizona and at gold prices less than or equal
to $1,500 per ounce, the royalty is a 3% NSR. In addition to the sliding scale royalty on Aurizona,
Sandstorm holds a 2% NSR royalty on the greenfields property optioned to AngloGold.
EARLY WARNING REPORT
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting
Issues, the Company is announcing the acquisition of an aggregate of 27,660,694 common shares ("Trek Shares") and 11,739,332
warrants (the "Trek Warrants") of Trek. Sandstorm acquired the Trek Shares and Trek Warrants upon the completion of the
aforementioned business combination of Luna Gold and JDL Gold, and pursuant to the terms of a debt
settlement agreement.
With the acquired Trek Shares and Trek Warrants, Sandstorm now holds an aggregate of 28,035,693 Trek Shares, representing
15.77% of the issued and outstanding Trek Shares. If you assume the exercise in the future of all of the Trek Warrants currently
held by the Company into Trek Shares, Sandstorm would then hold 37,095,940 Trek Shares, representing approximately 19.86% of the
then issued and outstanding Trek Shares, on a partially diluted basis.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the
foregoing matters and will be filed by the Company on Trek's SEDAR profile at www.sedar.com .
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming and royalty company. Sandstorm provides upfront financing to gold mining companies
that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of
the mine. Sandstorm has acquired a portfolio of 155 streams and royalties, of which 20 of the underlying mines are producing.
Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams and
royalties.
For more information visit: www.sandstormgold.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements", within the meaning of the U.S. Securities Act of 1933, the U.S.
Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities
legislation, concerning the business, operations and financial performance and condition of Sandstorm. Forward-looking statements
include, but are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and
resources, realization of mineral reserve estimates, and the timing and amount of estimated future production. Forward-looking
statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend",
"estimate", "anticipate", "believe", "continue", "plans", or similar terminology.
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause
the actual results, performances or achievements of Sandstorm to be materially different from future results, performances or
achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding
present and future business strategies and the environment in which Sandstorm will operate in the future, including the price of
gold and anticipated costs. Certain important factors that could cause actual results, performances or achievements to differ
materially from those in the forward-looking statements include, amongst others, gold price volatility, discrepancies between
actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development
risks relating to the parties which produce the gold Sandstorm will purchase, regulatory restrictions, activities by governmental
authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility
and competition.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause
the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed
or implied by such forward-looking statements, including but not limited to: the impact of general business and economic
conditions, the absence of control over mining operations from which Sandstorm will purchase gold and risks related to those
mining operations, including risks related to international operations, government and environmental regulation, actual results
of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be
refined, risks in the marketability of minerals, fluctuations in the price of gold, fluctuation in foreign exchange rates and
interest rates, stock market volatility, as well as those factors discussed in the section entitled "Risks to Sandstorm" in
Sandstorm's annual report for the financial year ended December 31, 2016 available at www.sedar.com. Although Sandstorm has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Sandstorm does not undertake to update any forward looking
statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
SOURCE Sandstorm Gold Ltd.
To view the original version on PR Newswire, visit: http://www.newswire.ca/en/releases/archive/April2017/05/c7624.html