VANCOUVER, BC, Oct. 6, 2021 /PRNewswire/ - Sandstorm Gold
Ltd. ("Sandstorm Gold Royalties", "Sandstorm" or the "Company")
(NYSE: SAND) (TSX: SSL) is pleased to announce that it has
increased its revolving credit agreement allowing the Company to
borrow up to $350 million,
incorporating sustainability-linked performance targets to
establish an Environment, Social, and Governance ("ESG") linked
credit facility ("ESG Revolving Loan").
"The 55% increase to Sandstorm's credit facility once again
emphasizes the Company's strong financial position and
creditworthiness," commented Erfan
Kazemi, Sandstorm's Chief Financial Officer. "We're pleased
to announce that Sandstorm is the first royalty company with a
credit facility linked to sustainability goals. With this credit
agreement, the Company is helping to lead a new era of corporate
lending that benefits shareholders while promoting corporate
responsibility."
The amounts drawn on the ESG Revolving Loan are subject to
interest at LIBOR plus 1.875%–3.0% per annum, and the undrawn
portion of the ESG Revolving Loan is subject to a standby fee of
0.422%–0.675% per annum, both of which are dependent on the
Company's leverage ratio. The syndicate of banks include The Bank
of Nova Scotia, Bank of
Montreal, National Bank of
Canada, Canadian Imperial Bank of
Commerce, and Royal Bank of Canada. The Revolving Loan has a term of four
years, maturing in October 2025.
The ESG Revolving Loan incorporates sustainability-linked
incentive pricing terms that allow Sandstorm to reduce the
borrowing costs by up to 5 basis points (from the interest rates
described above) as the Company's sustainability performance
targets are met. The performance targets, to be met by 2025, are
based on the following ESG goals of the company:
- Alignment with ESG Reporting Standards: Achieve a
certain percentage of producing assets reporting under
sustainability and climate-related standards;
- External ESG Rating: Maintain or improve an MSCI ESG
rating of "A"; and
- Diversity & Inclusion: Maintain or improve diverse
representation at the senior management and Board levels.
The Bank of Montreal acted as
the Sustainability Structuring Agent for the ESG Revolving
Loan.
CONTACT INFORMATION
For more information about Sandstorm Gold Royalties, please
visit our website at www.sandstormgold.com or email us at
info@sandstormgold.com.
ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a gold royalty company that 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 229 royalties, of which 28 of the underlying mines are
producing. Sandstorm plans to grow and diversify its low cost
production profile through the acquisition of additional gold
royalties. For more information visit: www.sandstormgold.com.
CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS
The financial information included or incorporated by reference
in this press release or the documents referenced herein has been
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
Board, which differs from US generally accepted accounting
principles ("US GAAP") in certain material respects, and thus are
not directly comparable to financial statements prepared in
accordance with US GAAP.
The disclosure and information contained or referenced herein
uses mineral reserve and mineral resource classification terms that
comply with reporting standards in Canada, and mineral reserve and mineral
resource estimates are made in accordance with Canadian NI 43-101
and the Canadian Institute of Mining, Metallurgy and Petroleum —
CIM Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards"). These standards differ significantly from the mineral
reserve disclosure requirements of the United States Securities
Exchange Commission (the "SEC") set forth in Industry Guide 7.
Consequently, information regarding mineralization contained or
referenced herein is not comparable to similar information that
would generally be disclosed by U.S. companies under Industry Guide
7 in accordance with the rules of the SEC. Further, the SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities Exchange Act of 1934
("Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules")
and, commencing for registrants with their first fiscal year
beginning on or after January 1,
2021, the SEC Modernization Rules replaced the historical
property disclosure requirements included in SEC Industry Guide
7. As a foreign private issuer that files its annual report
on Form 40-F with the SEC pursuant to the multi-jurisdictional
disclosure system, the Company is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. The SEC Modernization Rules include
the adoption of terms describing mineral reserves and mineral
resources that are "substantially similar" to the corresponding
terms under the CIM Definition, but there are differences in the
definitions under the SEC Modernization Rules and the CIM
Definition Standards. Accordingly, there is no assurance any
mineral reserves or mineral resources that the Company may report
as "proven mineral reserves", "probable mineral reserves",
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources" under NI 43-101 would be the same had
the Company prepared the mineral reserve or mineral resource
estimates under the standards adopted under the SEC Modernization
Rules. U.S. investors are also cautioned that while the SEC
recognizes "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under the Modernization
Rules, investors should not assume that any part or all of the
mineralization in these categories will ever be converted into a
higher category of mineral resources or into mineral reserves.
Mineralization described using these terms has a greater amount of
uncertainty as to its existence and feasibility than mineralization
that has been characterized as reserves. Accordingly, investors are
cautioned not to assume that any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable.
Further, "inferred mineral resources" have a greater amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. Therefore, U.S. investors are also
cautioned not to assume that all or any part of the "inferred
mineral resources" exist. Under Canadian securities laws, estimates
of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
For the above reasons, information contained or referenced herein
regarding descriptions of our mineral reserve and mineral resource
estimates is not comparable to similar information made public by
U.S. companies subject to reporting and disclosure requirements of
the SEC under either Industry Guide 7 or SEC Modernization
Rules.
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 Gold Royalties. Forward-looking statements include, but
are not limited to, the future price of gold, silver, copper, iron
ore and other metals, the estimation of mineral reserves and
resources, realization of mineral reserve estimates, the timing and
amount of estimated future production, including the increases to
production guidance, the offer and sale of Common Shares under the
at-the-market equity program (the "ATM Program"), including the
timing and amounts thereof, the use of any proceeds from the ATM
Program, and statements with respect to the Company's proposed
normal course issuer bid ("NCIB") and the number of Common Shares
that may be purchased under the NCIB, the Company's ability to
reach the sustainability-linked targets and the potential reduction
of borrowing costs if the Company's sustainability performance
targets are met. 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
Gold Royalties 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 Gold Royalties will operate in
the future, including the receipt of all required approvals, 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, failure to receive necessary approvals,
changes in business plans and strategies, market conditions, share
price, best use of available cash, gold and other commodity 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 or other commodity the Company 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
the Company 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 the
Company will purchase gold, other commodities or receive royalties
from, 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 and
other commodities, 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 the
Company's annual report for the financial year ended December 31, 2020 and the section entitled "Risk
Factors" contained in the Company's annual information form dated
March 30, 2021 available at
www.sedar.com. Although the Company 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. The Company does not
undertake to update any forward-looking statements that are
contained or incorporated by reference, except in accordance with
applicable securities laws.
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SOURCE Sandstorm Gold Ltd.