Sandstorm Gold, an
innovative gold streaming company with an established portfolio of eight
streams (Entree Gold, Luna Gold and Metanor Resources to name but a few) and
some 27 gold royalties, was happy to report today on yesterday’s successful
completion of the previously announced plan of arrangement whereby Primero
Mining (PPP) acquired Canadian mid-tier gold producer, Brigus Gold (BRD), whose
4.36k-acre Black Fox Mine Complex up in Ontario’s Timmins Gold District is
streamed to SAND under an agreement for 8% of the gold from total mine life (as
well as 6.3% of the Black Fox Extension gold) at $500 an ounce.
Closing this acquisition is
great news for SAND shareholders, as the stream is now in the hands of a much
better capitalized player, which has the logistical muscle and sheer scale of
operations required to significantly de-risk this part of SAND’s portfolio.
Closing the Brigus transaction has also transformed Primero substantially, into
a bonafide mid-tier gold producer with a diverse pipeline of growth projects.
The deal also sparked a move yesterday by major PPP shareholder and industry
leader, Goldcorp, as well as Canaccord Genuity, on behalf of a syndicate of
underwriters, who have agreed to purchase all shares of PPP (on a bought deal
basis) for C$7.20/share.
Needless to say, this is all
very good news for SAND and the company now looks forward to drill results from
the current exploration program at Black Fox with great anticipation. This kind
of success will make it very easy for SAND to continue to grow and diversify
their low cost production profile, picking up more juicy streaming and royalty
agreements that drive returns directly into their shareholder’s pockets.
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
