VANCOUVER,
Dec. 6, 2013 /CNW/ - Sandstorm Gold
Ltd. ("Sandstorm") (NYSE MKT: SAND, TSX: SSL) announces a status
update related to Colossus Minerals Inc. ("Colossus" or "the
Company") and their efforts to secure funding for the balance of
the expenses required to commence production at the Serra Pelada
Mine in Brazil ("Serra
Pelada").
In a press release dated November 14, 2013, Colossus announced that
development delays at Serra Pelada had resulted in a change to the
anticipated production start date at the mine and that additional
capital would be needed. The management team at Colossus has
estimated that US$70 million is
required in order to meet the Company's existing obligations and
progress Serra Pelada to production.
At this time, the board of directors of Colossus
has decided to cease underground development at Serra Pelada in
order to reduce ongoing costs. The Company intends to continue with
the dewatering program at the mine and commence underground
definition drilling in connection with the preparation of a
National Instrument 43-101 compliant resource estimate for Serra
Pelada. Roscoe Postle Associates Inc. has been hired to complete
the resource estimate which is expected by the end of December,
2013.
Given that Colossus has material negative
working capital, the Company will need additional funding in order
to proceed with the strategy outlined by its board of directors.
Sandstorm will be reviewing its investment in the Company for a
partial or full impairment as there can be no assurance that
adequate funding will be available for Colossus in the future.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming company.
Sandstorm provides upfront financing to 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 gold produced from a mine, for the life of the
mine, at a fixed price per ounce. Sandstorm has acquired a
portfolio of nine gold streams and twenty-five gold royalties, of
which thirteen of the underlying mines are producing gold.
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 stream agreements with Brigus Gold
Corp., Colossus Minerals Inc., Entrée Gold Inc., Luna Gold Corp.,
Metanor Resources Inc., Mutiny Gold Ltd., Santa Fe Gold Corp., and
SilverCrest Mines Inc., Rambler Metals and Mining plc.
For more information visit:
www.sandstormgold.com.
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 Ltd. ("Sandstorm").
Forward-looking statements include, but are not limited to,
statements with respect to the future price of gold, 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 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 will operate in
the future, including 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, gold 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 Sandstorm 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 Sandstorm 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 Sandstorm will purchase gold 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, 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
Sandstorm's annual report for the financial year ended December 31, 2012 available at
www.sedar.com. Although Sandstorm 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. Sandstorm does not
undertake to update any forward looking statements that are
contained or incorporated by reference, except in accordance with
applicable securities laws.
SOURCE Sandstorm Gold Ltd.