Nov 1 2012
Sandstorm Gold Ltd. ("Sandstorm" or the "Company") has received official notification that Brigus Gold Corp. ("Brigus") will exercise its repurchase option under the gold stream agreement between Sandstorm and Brigus, by making a US$24.4 million payment to Sandstorm.
Under the original agreement (previously announced on November 9, 2010), Sandstorm is entitled to purchase 12% of the gold produced from the Black Fox Mine, at an ongoing purchase price of US$500 per ounce. With the payment from Brigus, 4% of the gold stream will be repurchased and Sandstorm will be entitled to purchase 8% of the gold produced from the Black Fox Mine.
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides upfront financing for gold mining companies that are looking for capital and in return, receives a gold streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the life of mine gold produced, at a fixed price. Sandstorm is a non-operating gold mining company with a portfolio of eight gold streams (five of which are producing gold) and three NSR gold royalties. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams.
Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold purchase or royalty agreements with Brigus Gold Corp., Colossus Minerals Inc., Donner Metals Ltd., Luna Gold Corp., Magellan Minerals Ltd., Metanor Resources Inc., Rambler Metals and Mining plc, Santa Fe Gold Corp., SilverCrest Mines Inc., and Solitario Exploration & Royalty Corp.
Source: http://www.sandstormgold.com/