VANCOUVER, BC, June 15,
2023 /CNW/ - Sandstorm Gold Ltd. ("Sandstorm Gold
Royalties", "Sandstorm" or the "Company") (NYSE: SAND) (TSX: SSL)
is pleased to provide updates on various assets including the
completion of the previously announced Antamina transaction with
Horizon Copper Corp. ("Horizon Copper" or "Horizon") (TSXV:
HCU).
COMPLETION OF ANTAMINA TRANSACTION WITH HORIZON
COPPER
Sandstorm has completed the previously announced sale of its
1.66% net profits interest on the Antamina copper mine in
Peru (the "Antamina NPI") to
Horizon Copper. As consideration for the Antamina NPI, Horizon
Copper provided to Sandstorm US$20
million in cash, a 1.66% life-of-mine silver stream
referenced to silver production from Antamina (the "Antamina Silver
Stream"), a secured long-term convertible note with a principal
amount of US$149.1 million, and
2,329,849 common shares of Horizon, which maintains Sandstorm's 34%
ownership of Horizon. Sandstorm also retained a residual royalty
with payments equal to approximately one-third of the total
Antamina NPI, after deducting the Antamina Silver Stream. With the
close of the transaction, Horizon Copper is expected to commence
trading on the TSX-V on June 21,
2023.
For more details on the Antamina NPI transaction, see the
Company's press release dated May 2,
2022 and Horizon's press release dated June 15, 2023.
With the completion of the Antamina NPI transaction, Horizon
Copper now holds interests in three renowned copper projects: a
1.66% NPI on the Antamina copper mine in Peru, a 30% interest in the Hod Maden
copper-gold project in Türkiye, and a 25% equity stake in Entrée
Resources Ltd. (TSX: ETG), which holds a 20% carried interest joint
venture on the Hugo North Extension of the Oyu Tolgoi copper
project in Mongolia. Horizon's
objective is to actively grow its existing portfolio of assets with
a focus on copper projects. Horizon Copper is a strategic growth
partner for Sandstorm, whereby Sandstorm may help fund future
copper asset acquisitions with stream financing on precious metal
by-products. For more information about Horizon Copper, visit
www.horizoncopper.com.
RIO TINTO COMMENCES UNDERGROUND PRODUCTION AT OYU TOLGOI AND
CONSOLIDATES OWNERSHIP IN PROJECT
Rio Tinto Group ("Rio Tinto") announced that underground
production began at the Oyu Tolgoi copper mine in Mongolia. The milestone event was celebrated
at a ceremony with Oyu Tolgoi employees and Government of
Mongolia representatives. Over
thirty drawbells have been blasted since January 2022 and copper is now being produced
from the underground mine. Oyu Tolgoi is expected to become the
fourth-largest copper mine in the world by 20301,
operating in the first quartile of the copper equivalent cost
curve. Ore is currently being processed from Panel Zero in Hugo
North Lift 1 and production will ramp up over the coming years.
In December 2022, Rio Tinto
completed the acquisition of Turquoise Hill Resources Ltd. and now
holds a 66% direct interest in the Oyu Tolgoi project with the
remaining 34% owned by the Government of Mongolia.
For more information, visit the Rio Tinto website at
www.riotinto.com and see the press releases dated March 13, 2023, and December 16, 2022.
Sandstorm holds a gold, silver, and copper stream on the Hugo
North Extension whereby Sandstorm is entitled to purchase 5.62% of
the gold and silver produced at ongoing payments of US$220 per ounce gold and US$5 per ounce silver. Sandstorm is entitled to
purchase 0.42% of the copper produced at an ongoing payment of
US$0.50 per pound copper.
LUNDIN MINING TO ACQUIRE MAJORITY INTEREST IN CASERONES
COPPER MINE
Lundin Mining Corporation ("Lundin Mining") announced it has
entered into a binding purchase agreement to acquire 51% of the
Caserones copper-molybdenum mine located in Chile. Lundin Mining will pay upfront cash
consideration of $800 million and an
additional $150 million in deferred
cash consideration in installments over a six-year period following
the closing date. Lundin Mining will also have the right to acquire
up to an additional 19% interest in Caserones for $350 million over a five-year period commencing
on the first anniversary of the date of closing.
The acquisition delivers a large-scale, long-life copper
operation with favorable cash flow generation that will complement
Lundin Mining's existing operations and overall copper-dominant
portfolio of high-quality base metal mines. The proximity of
Caserones to Lundin Mining's Candelaria operations (approximately
160 km from Caserones) and the emerging Vicuña copper district
introduces opportunities to realize additional savings and
implement effective supply, logistical, and management strategies.
Lundin Mining expects operational improvements under their
management, including initiating drill programs. Lundin Mining
believes significant exploration potential exists within the
mineral property package at Caserones with several priority
exploration targets identified to date.
For more information, visit Lundin Mining's website at
www.lundinmining.com and see the press release dated March 27, 2023.
Sandstorm holds a 0.63% net smelter returns ("NSR") royalty on
the Caserones mine when copper prices are greater than US$1.25 per pound copper. The NSR royalty varies
at copper prices below US$1.25 per
pound.
BARRICK DECLARES MAIDEN RESERVES FOR ROBERTSON DEPOSIT AT
CORTEZ COMPLEX
Barrick Gold Corporation ("Barrick") has completed a
Pre-Feasibility Study for the Robertson open pit project at the
Cortez Complex in Nevada.
Robertson's maiden attributable Proven and Probable gold Reserves
are estimated at 1.0 million ounces at 0.46 grams per tonne ("g/t")
contained within approximately 67.6 million tonnes. Resources
continued to grow, with additional exploration upside being further
tested at the Distal target, located at the western extent of
Robertson. Robertson is a key source of oxide mill feed in the long
term mine plan for the Cortez Complex, which consists of multiple
open pit and underground mines and several processing facilities.
The growth at Robertson broadens support of Barrick's plan for the
deposit to contribute meaningfully to Cortez's production profile
and extend beyond the 10-year outlook.
For more information, visit the Barrick website at
www.barrick.com and see the press release dated February 9, 2023, and Barrick's 2022 Annual
Report. Barrick reports gold reserves based on "variable cut-off
grades".
Sandstorm holds a sliding-scale NSR royalty on the Robertson
project between 1.0%–2.25%. When gold prices are below US$1,200 per ounce, the NSR is 1.0%, increasing
0.25% for every US$200 increase in
the price of gold per ounce up to a maximum 2.25% NSR royalty.
LUNDIN GOLD ADDS 1.58 MILLION OUNCES TO FRUTA DEL NORTE
MINERAL RESERVES
Lundin Gold Inc. ("Lundin Gold") announced updated Mineral
Reserves for the Fruta del Norte gold mine in Ecuador. As of December
31, 2022, Proven and Probable Mineral Reserves contain 5.0
million ounces of gold in 18.0 million tonnes at a grade of 8.7 g/t
(based on 4.2 g/t cut-off grade for transverse stope and 5.3 g/t
for drift and fill reserves). The updated Mineral Reserves have, in
effect, replaced all mined Reserves since operations began at the
mine in 2019, as well as added additional Reserves. Lundin Gold
plans to increase a near-mine drilling program to a minimum of
23,000 metres in 2023, compared to 15,500 metres originally
planned. The company's conversion program that is currently
underway aims to convert Mineral Resources to Mineral Reserves.
Sandstorm's royalty covers a 644 square kilometre land package at
Fruta del Norte, including the entirety of existing reserves and
resources.
For more information, visit the Lundin Gold website at
www.lundingold.com and see the press releases dated February 27, 2023 and May
4, 2023. Sandstorm has a 0.9% NSR royalty on the precious
metals produced from the Fruta del Norte project.
LUNDIN MINING ANNOUNCES MAIDEN ESTIMATE FOR THE SAÚVA DEPOSIT
AND UPDATES CHAPADA MINERAL RESERVES AND RESOURCES
Lundin Mining Corporation ("Lundin Mining") reported its Mineral
Resource and Reserve Estimates for the Chapada project in
Brazil, including the Maiden
Estimate for the Saúva Deposit, located approximately 15 kilometres
from the Chapada plant.
Saúva's Indicated Mineral Resource is estimated to be 179.0
million tonnes at 0.32% copper and 0.20 g/t gold, containing
578,000 tonnes (1.3 billion pounds) of copper and 1.1 million
ounces of gold (using a cut-off grade of 0.16% copper equivalent
based on $4.02 per pound copper and
$1,800 per ounce gold and 79%
recovery for copper and 68% recovery for gold). The deposit remains
open, and Lundin Mining expects Mineral Resources to continue to
grow with ongoing exploration efforts.
Chapada's Proven and Probable Mineral Reserves are estimated to
be 655.7 million tonnes at 0.23% copper and 0.13 g/t gold,
containing 1.5 million tonnes (3.3 billion pounds) of copper and
3.7 million ounces of gold. Total copper-gold Measured and
Indicated Mineral Resources are estimated to be 1.1 billion tonnes
at 0.22% copper and 0.12 g/t gold, containing 2.5 million tonnes
(5.4 billion pounds) of copper and 4.15 million ounces of gold.
Lundin Mining reported that exploration success has offset mine
depletion since the June 30, 2021
Mineral Estimates (Mineral Resources are inclusive of Mineral
Reserves and are based on an open pit discard NSR cut-off grade of
$4.72 per tonne using metal prices of
$4.02 per pound copper and
$1,800 per ounce gold).
For more information visit the Lundin Mining website
at www.lundinmining.com and see the press release dated
February 8, 2023.
Sandstorm has a copper stream agreement to purchase 4.2% of the
copper produced at Chapada up to a maximum of 3.9 million pounds
annually. When 39 million pounds of copper has been delivered to
Sandstorm, the copper stream will reduce to 3.0%. Once 50 million
pounds of copper have been delivered to Sandstorm on a cumulative
basis, the stream will reduce to 1.5% of the copper produced for
the life of the mine. Sandstorm will make ongoing payments for each
pound of copper purchased equal to 30% of the spot price of copper.
Sandstorm also holds a 2.0% NSR royalty on the Suruca Deposit at
Chapada, which was purchased as part of the Nomad Royalty Company
Ltd. acquisition in 2022.
CERRADO GOLD COMMENCES HEAP LEACH OPERATIONS AT LAS
CALANDRIAS
Cerrado Gold Inc. ("Cerrado Gold") announced that heap leach
operations at its Las Calandrias project in Argentina commenced in April and expects first
gold pour in June. The Las Calandrias project is expected to add
25,000 ounces per annum of gold production capacity and is the
first of two heap leach projects that are to be initiated this
year, growing overall gold production from Cerrado Gold's
Argentinian operations.
For more information visit Cerrado Gold's website
at www.cerradogold.com and see the press release dated
April 27, 2023. Sandstorm holds a
2.0% NSR royalty on the Las Calandrias project.
SANDSTORM FILES EARLY WARNING REPORT
Pursuant to National Instrument 62-103 - The Early
Warning System and Related Take Over Bid and Insider Reporting
Issues, Sandstorm reported that it has received of an aggregate
of 2,329,849 common shares of the Horizon Copper ("Horizon
Shares"), in partial the second part of Horizon's
previously announced reverse takeover transaction ("RTO Part
B"). In addition, Sandstorm also acquired 1,468,750
Horizon Shares and 734,375 warrants (the "Warrants") upon the
conversion of subscription receipts ("Subscription Receipts")
acquired by Sandstorm in the previously closed Horizon
Copper (the "Private Placement") (see Horizon's press
release dated April
17th and April
20th).
Each Warrant entitles Sandstorm to purchase one Common Share
at an exercise price of C$1.10 (or
US$ equivalent) per share for a period of four (4) years from the
date of issuance. Prior to the RTO Part B and the
Private Placement, Sandstorm owned 25,475,487 Horizon Shares
representing approximately 34% of the outstanding Horizon Shares on
a non-diluted basis. Sandstorm also held an initial principal
amount US$95 million convertible
promissory note initially issued on August
31, 2023 (the "RTO Part A Note"). Following the completion
of RTO Part B and the Private Placement, Sandstorm owns 29,274,086
Horizon Shares representing approximately 34% of the outstanding
Horizon Shares on a non-diluted basis.
In addition, as partial consideration for RTO Part B, Sandstorm
received the RTO Part B Note, which has a maturity date of ten
years and is convertible into Horizon Shares either by Sandstorm or
Horizon in repayment of the RTO Part B Note subject to certain
conditions. The RTO Part B Note will be convertible into Horizon
Shares at the option of Sandstorm at a conversion price of the
greater of * the current market price as of the date of conversion
and * the floor price of C$0.60 per
Horizon Shares, subject in each instance to adjustments in certain
circumstances. Horizon Copper may also, at its option repay the RTO
Part B Note at the then current market price, provided that if the
current market price is lower than C$0.60 per Horizon Shares, Horizon Copper shall
not be entitled to exercise its right to repay the loans in Horizon
Shares. Similarly to RTO Part A Note, the RTO Part B Note provides
that Horizon Copper shall not effect any conversion of any amount
under the RTO Part B Note or any payment by the issuance of Horizon
Shares and Sandstorm shall not have the right to convert any amount
thereunder, to the extent that after giving effect to such
conversion or issuance Sandstorm, alone or together with any of its
affiliates, would beneficially own in excess of 34% of the number
of common shares outstanding immediately after giving effect to
such conversion or issuance on a non-diluted basis.
The acquisition of the Horizon Shares and the RTO Part B Note is
being completed pursuant to the terms of a definitive acquisition
agreement entered into between Horizon and Sandstorm in connection
with the RTO Part B. Depending on market conditions and other
factors, Sandstorm advises that it may, from time to time, acquire
additional securities of Horizon, dispose of some or all of the
existing or additional securities it holds or will hold, or may
continue to hold its current position. An Early Warning Report, as
required under National Instrument 62-103, containing additional
information with respect to the foregoing matters and will be filed
by Sandstorm on Horizon Copper's SEDAR profile at www.sedar.com. To
obtain a copy of the report, contact Investor Relations at 604 628
1164. Horizon Copper's head office is located at 400 Burrard St,
Suite 1400, Vancouver, BC V6C
3A6.
Notes
- Source: Wood Mackenzie Dec 2022, based on production from
committed projects
QP
Qualified
Person
|
Keith Laskowski (MSc),
Sandstorm's Vice President, Geology is a
Qualified Professional (#01221QP) of the Mining and
Metallurgical
Society of America and a Qualified Person as defined by
Canadian
National Instrument 43-101. He has reviewed and approved the
technical information in this press release.
|
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 precious metals-focused royalty company that
provides upfront financing to mining companies and receives the
right to a percentage of production from a mine, for the life of
the mine. Sandstorm holds a portfolio of 250 royalties, of which 40
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.
This press release and the documents incorporated by reference
herein, as applicable, have been prepared in accordance with
Canadian standards for the reporting of mineral resource and
mineral reserve estimates, which differ from the previous and
current standards of the United
States securities laws. In particular, and without limiting
the generality of the foregoing, the terms "mineral reserve",
"proven mineral reserve", "probable mineral reserve", "inferred
mineral resources,", "indicated mineral resources," "measured
mineral resources" and "mineral resources" used or referenced
herein and the documents incorporated by reference herein, as
applicable, are Canadian mineral disclosure terms as defined in
accordance with Canadian National Instrument 43-101 — Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards").
For United States reporting
purposes, the United States Securities and Exchange Commission (the
"SEC") has adopted amendments to its disclosure rules (the "SEC
Modernization Rules") to modernize the mining property disclosure
requirements for issuers whose securities are registered with the
SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules
more closely align the SEC's disclosure requirements and policies
for mining properties with current industry and global regulatory
practices and standards, including NI 43-101, and replace the
historical property disclosure requirements for mining registrants
that were included in SEC Industry Guide 7. Issuers were required
to comply with the SEC Modernization Rules in their first fiscal
year beginning on or after January 1,
2021. As a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Corporation 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. Accordingly, mineral reserve and
mineral resource information contained or incorporated by reference
herein may not be comparable to similar information disclosed by
United States companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources." In
addition, the SEC has amended its definitions of "proven mineral
reserves" and "probable mineral reserves" to be "substantially
similar" to the corresponding CIM Definition Standards that are
required under NI 43-101. While the SEC will now recognize
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", U.S. investors should not assume that
all or any part of the mineralization in these categories will be
converted into a higher category of mineral resources or into
mineral reserves without further work and analysis. 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, U.S. investors are
cautioned not to assume that all or any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable
without further work and analysis. Further, "inferred mineral
resources" have a greater amount of uncertainty 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
inferred mineral resources will be upgraded to a higher category
without further work and analysis. Under Canadian securities laws,
estimates of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. While
the above terms are "substantially similar" to CIM Definitions,
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 reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules or under the prior standards of SEC Industry Guide 7.
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 "forward-looking information" within the meaning of
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 Horizon Copper's ability to be a strategic
growth partner for Sandstorm, whereby Sandstorm may help fund
future copper asset acquisitions with stream financing on precious
metal by-products; the future price of gold, silver, copper, iron
ore and other metals, 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
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 copper 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, 2022 and the section entitled "Risk
Factors" contained in the Company's annual information form dated
March 23, 2023 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/sandstorm-gold-royalties-completes-antamina-transaction-with-horizon-copper-and-provides-asset-updates-301852581.html
SOURCE Sandstorm Gold Ltd.