Transaction
Sandstorm Resources Ltd. Signs Gold Purchase Agreements with Luna and SilverCrest
By Jason MacIntosh, Cathy L. Mercer, Jennifer Traub
On May 15, 2009, Sandstorm Resources Ltd. entered into definitive binding documentation for gold purchase transactions with Luna Gold Corp. and SilverCrest Mines Inc.
Sandstorm Resources Ltd. has agreed to purchase 17% of the life of mine gold production from Luna Gold Corp.'s Aurizona project for US$17.8 million upfront in cash plus ongoing per ounce payments equal to the lesser of US$400 or the then prevailing market price per ounce of gold and the issuance of 5,500,000 common shares of Sandstorm as part of the upfront consideration.
Sandstorm Resources Ltd. has agreed to purchase 20% of the life of mine gold production from SilverCrest Mines Inc.'s Santa Elena project for US$12 million upfront in cash plus ongoing per ounce payments equal to the lesser of US$350 and the then prevailing market price per ounce of gold and the issuance of 3,500,000 common shares of Sandstorm as part of the upfront consideration.
Cassels Brock acted for Sandstorm Resources Ltd. with a team that included Cathy Mercer (Securities and Mining), Jennifer Traub (Securities and Mining), and Jason MacIntosh (Securities).