Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or
the “Company”) (NYSE: SAND, TSX: SSL) is pleased to provide an
asset update and announce the Company has filed the prospectus
supplement for the previously announced at-the-market equity
program.
Hod Maden Drill Results
Recent infill drill results have been reported by Lidya
Madencilik San. ve Tic. A.S. (“Lidya”), Sandstorm’s 70% partner at
Hod Maden. A total of 2,864 metres in 24 drill holes have been
completed in 2020 and once travel and work restrictions are lifted
in Turkey, Lidya plans on continued infill, geotechnical,
hydrological and exploration drilling on the project.
Highlighted drill results include:
- HTG-002: 85.3 metres at 84.3 grams per tonne (“g/t”)
gold and 6.8% copper from 19.0 metres, (using a 2.4 g/t cut-off
grade, uncut) including:
- 32.0 metres at 209.4 g/t gold and 7.4% copper from 19.0 metres
(using a 100 g/t cut-off grade, uncut); or
- 32.0 metres at 164.5 g/t gold and 7.4% copper (using a top-cut
grade of 240 g/t); and
- HTG-003: 169.3 metres of 39.0 g/t gold and 1.7% copper
from 20.8 metres (cut-off grade 2.4 g/t, uncut), including:
- 13.0 metres at 147.0 g/t gold and 2.0% copper from 63.0
metres.
Drill holes HTG-002 and HTG-003 are infill drill holes within
the main deposit at Hod Maden. The holes were drilled oblique to
the strike, testing the continuity of the high-grade
mineralization. Assay results show excellent, uniform grade
distributions within the deposit, which has an estimated true
thickness of about 65 meters.
For QA/QC information see the appendix of this news release.
Sandstorm has a 30% interest and a 2% NSR royalty on the Hod Maden
project.
Sandstorm Receives First Delivery From Relief Canyon
In May, Sandstorm received its first gold delivery from Americas
Gold and Silver Corporation (“Americas Gold”) under the Relief
Canyon stream agreement. Americas Gold announced that the Relief
Canyon mine, which achieved first gold pour in mid-February 2020,
expects to reach commercial production by the third quarter of
2020.
For more information, refer to www.americas-gold.com and
see the press releases dated February 18, 2020 and May 4, 2020.
Under the terms of the stream agreement, Sandstorm is entitled
to receive 32,022 ounces of gold over a 5.5 year period (the “Fixed
Deliveries”). After the Fixed Deliveries, the Company is entitled
to purchase 4.0% of the gold and silver produced at the Relief
Canyon mine for the life of the mine and will pay Americas Silver
30%–65% of the spot price of gold and silver for each ounce of gold
and silver delivered.
Equinox Gold Releases PEA for Underground Mine at Aurizona
and Updates Mineral Resource and Mineral Reserve Estimates
Equinox Gold Corp. (“Equinox Gold”) announced a positive
Preliminary Economic Assessment (“PEA”) for development of an
underground mine at the Aurizona project in Brazil. The underground
mine could be operated concurrently with the existing open-pit
mine. The PEA outlines total underground production of 740,500
ounces of gold over a ten-year mine life. Production from the
underground mine would provide 2,800 tonnes per day to be processed
through the existing 8,000 tonnes per day plant and uses other
existing surface infrastructure at site. The PEA is preliminary in
nature and includes Inferred Mineral Resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves.
Equinox Gold intends to advance studies focused on underground
development and expects to complete a Pre-Feasibility Study for the
Piaba underground mine in 2021. They have commenced a 17,000 metre
drill program aimed primarily at converting underground Inferred
Resources to Indicated Resources in support of the Pre-Feasibility
Study. Future drilling is planned to also target expansion of the
Piaba underground deposit at depth and along strike.
Equinox Gold recently completed an updated Mineral Reserve and
Mineral Resources estimates for the Aurizona mine. Exploration
success offset 2019 mining depletion with Mineral Reserves largely
unchanged at 19.8 million tonnes (“Mt”) grading 1.51 g/t gold for
958,000 ounces of contained gold, with Proven Reserves of 12.4 Mt
grading 1.51 g/t gold and Probable Reserves of 7.4 Mt grading 1.51
g/t gold. The Mineral Reserve estimate has an effective date of
December 31, 2019 based on a cut-off grade of 0.6 g/t gold for
Piaba and Piaba East and 0.41 g/t gold for Boa Esperança.
The Aurizona Measured and Indicated Resources (exclusive of
reserves) increased 22% to a total of 844,000 ounces of contained
gold from 16.0 Mt grading 1.64 g/t gold, with Measured Resources of
2.7 Mt grading 1.25 g/t gold and Indicated Resources of 13.2 Mt
grading 1.73 g/t gold. The increase was from exploration success at
the Tatajuba deposit resulting in a maiden open pit Indicated
Resource at Tatajuba of 2.1 Mt grading 1.62 g/t gold for 112,000
ounces of contained gold.
The Tatajuba Mineral Resource estimate has an effective date of
January 24, 2020 and the Mineral Resources from the Piaba open-pit,
Piaba underground and Boa Esperança have an effective date of
December 31, 2019. The open-pit Mineral Resources are reported
using a cut-off grade of 0.6 g/t gold and the underground Mineral
Resources are reported using a cut-off grade of 1.0 g/t gold. The
Tatajuba open-pit Mineral Resources were not included in the
current Mineral Reserve update. A total of 6,662 metres of core
were drilled in 2019 in the Tatajuba area, bringing the total to
14,072 metres in support of the maiden Mineral Resource
estimate.
For more information visit the Equinox Gold website at
www.equinoxgold.com and see the press releases dated May 7,
2020 and May 12, 2020.
Sandstorm has a 3.0%–5.0% sliding scale net smelter returns
(“NSR”) royalty on the Aurizona project. At gold prices less than
or equal to $1,500 per ounce, the royalty is a 3.0% NSR. At gold
prices between $1,500 and $2,000 per ounce, the royalty is a 4%
NSR. Above $2,000 per ounce, the royalty is a 5% NSR. In addition,
Sandstorm holds a 2.0% NSR royalty on the Aurizona Greenfields
property, a package of exploration ground adjacent to the Aurizona
project.
Initiation of ATM Program
As previously announced, Sandstorm has established an
at-the-market equity program (the “ATM Program”) that allows the
Company to issue up to US$140 million (or the equivalent in
Canadian dollars) of common shares (“Common Shares”) from treasury
to the public from time to time, at the Company’s discretion and
subject to regulatory requirements.
Any Common Shares sold in the ATM Program will be sold by way of
(i) ordinary brokers’ transactions that meet the definition of an
“at-the-market offering” under the rules and regulations of the
Securities and Exchange Commission (the “SEC”) under the Securities
Act of 1933, as amended, (ii) ordinary brokers’ transactions that
constitute an “at-the-market distribution” as described in Part 9
of National Instrument 44-102 – Shelf Distributions and made in
compliance with the exemptive relief decision dated April 22, 2020
obtained by the Company pursuant to National Policy 11-203 –
Process for Exemptive Relief Applications in Multiple Jurisdictions
providing relief from certain Canadian securities laws with respect
to the sale of the Common Shares in connection with the ATM
Program, including, without limitation, sales made directly on the
New York Stock Exchange and the Toronto Stock Exchange (the “TSX”),
or any other Canadian marketplace or United States marketplace, or
(iii) such other sales of Common Shares by an Agent (as defined
herein) on behalf of the Company in its capacity as agent of the
Company as shall be agreed by the Company and the applicable Agent
in writing, at prevailing market prices. Since the Common Shares
will be distributed at the prevailing market prices at the time of
the sale, prices may vary among purchasers and during the period of
distribution.
Sandstorm does not currently have any plans to use the ATM
Program. Sandstorm intends to use the net proceeds from the ATM
Program, if any, to finance future gold and other metal purchase
agreements and the purchase of royalties and/or for other general
corporate purposes, including the repayment of indebtedness.
Sales of Common Shares through the ATM Program will be made
pursuant to the terms of an equity distribution agreement dated May
14, 2020 entered into among the Company, BMO Nesbitt Burns Inc.,
Scotiabank, National Bank Financial Inc., CIBC Capital Markets, RBC
Dominion Securities Inc. and Cormark Securities Inc. (the “Canadian
Agents”) and BMO Capital Markets Corp. and Scotiabank (the “US
Agents” and, together with the Canadian Agents, the “Agents”). The
ATM Program will be effective until the earliest of the date that
all Common Shares available for issue under the ATM Program have
been issued, May 20, 2022 or the ATM Program is terminated prior to
such date by the Company or the Agents.
The ATM Program is being established pursuant to a prospectus
supplement dated May 14, 2020 (the “Canadian Prospectus
Supplement”) to the Company’s Canadian base shelf prospectus dated
April 20, 2020 (the “Canadian Shelf Prospectus”) filed with the
securities commissions in each of the provinces and territories of
Canada and pursuant to a prospectus supplement dated May 14, 2020
(the “U.S. Prospectus Supplement”) to the Company’s U.S. base shelf
prospectus dated April 20, 2020 (the “U.S. Shelf Prospectus”)
included in its registration statement on Form F-10 (the
“Registration Statement”) and filed with the SEC. Before you
invest, you should read the Canadian Prospectus Supplement, the
U.S. Prospectus Supplement, the Canadian Shelf Prospectus, the U.S.
Shelf Prospectus and the Registration Statement, as applicable, and
all other documents the Company has filed with the Canadian
securities regulatory authorities and the SEC for more complete
information about the Company and the ATM Program. The Canadian
Prospectus Supplement and the Canadian Shelf Prospectus may be
downloaded for free from SEDAR at www.sedar.com, and the
U.S. Prospectus Supplement, the U.S. Shelf Prospectus and the
Registration Statement are available for free via EDGAR on the SEC
website at www.sec.gov.
Alternatively, any of the following Agents participating in the
ATM Program will arrange to send you these documents if you request
it by contacting (i) in Canada: BMO Nesbitt Burns Inc. by mail at
Brampton Distribution Centre, 9195 Torbram Road, Brampton, Ontario,
L6S 6H2, attn: The Data Group of Companies, by email at
torbramwarehouse@datagroup.ca or by telephone at 905-791-3151 ext.
4312, or Scotiabank by mail at Scotia Plaza, 62nd Floor, 40 King
Street West, Toronto, Ontario M5H 3Y2, attn: Equity Capital
Markets, by email at equityprospectus@scotiabank.com or by
telephone at 416-863-7704; and (ii) in the United States: BMO
Capital Markets Corp. by mail at 3 Times Square, 25th Floor, New
York, NY 10036, attn: Equity Syndicate, by email at
bmoprospectus@bmo.com or by telephone at 800-414-3627, or
Scotiabank by mail at 250 Vesey Street, 24th Floor, New York, New
York, 10281, attn: Equity Capital Markets, by email at
equityprospectus@scotiabank.com or by telephone at
212-225-6853.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the Common Shares, nor shall there
be any sale of the Common Shares in any jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
Appendix
Prospect
Hole ID
Hole Type
Max Depth
Dip
Azimuth
UTM Zone
Easting
Northing
Elevation
HOD MADEN
HTG-002
GEO
195
-68
15
37
740657.354
4542197.88
860.1
HOD MADEN
HTG-003
GEO
190.1
-73
210
37
740656.94
4542198.77
860.2
All drill hole assay data for Hod Maden was provided to
Sandstorm from Lidya. Hod Maden mineralized intervals presented in
this press release are drill intersection widths and may not
represent true widths of mineralisation. Standard sampling protocol
involved the halving of all drill core and sampling over generally
1 metre intervals in clearly mineralized sections or 2.0 metre
intervals elsewhere, with one half of the core being placed in a
sealed sample bag and dispatched to the analytical laboratory for
analysis. Samples have been analysed at ALS Laboratories’ facility
in Izmir, western Turkey. All samples have been analysed for gold
using a 30 gram Fire Assay with AAS finish (or Screen Fire Assay
for higher grade samples), in addition to a 32 element ICP-AES
analysis of an aqua regia digest. Samples in which ICP analyses
returned greater than the maximum detection limit for the elements
Ag (10 ppm), Cu (10,000 ppm), Fe (15%), Pb (10,000 ppm), and Zn
(10,000 ppm) were reanalysed using the AAS analytical technique.
Standards and blanks were inserted into the analytical sequence on
the basis of one standard for every 20 samples, 2 blanks in every
batch, and one duplicate every 40 samples. The drill intercepts
were calculated using the previously stated cut-off grades.
Intercepts may include one sample interval of internal dilution and
one interval of adjacent dilution.
QP
Qualified Person
Keith Laskowski (MSc), Sandstorm’s Vice
President, Technical Services 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 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 191 royalties, of which 20 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.
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Sandstorm has been prepared
in accordance with requirements and standards under securities
laws, which differ from the requirements of US securities laws. The
terms “mineral resource”, “measured mineral resource”, “indicated
mineral resource” and “inferred mineral resource” used in this or
in the documents incorporated by reference herein are mining terms
as defined in accordance with NI 43-101 under guidelines set out in
the Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council on 11 December 2005. While the terms “mineral
resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are recognized and
required by securities laws other than the requirements of US
securities laws, they are not recognized by the SEC. Disclosure of
contained ounces are or may be permitted disclosure under
regulations applicable to Sandstorm; however, the SEC normally only
permits issuers to report resources as in place tonnage and grade
without reference to unit of production measures. As such, certain
information contained in this document or in the documents
incorporated by reference herein concerning descriptions of
mineralization and mineral resources under these standards may not
be comparable to similar information made public by US companies
subject to reporting and disclosure requirements of the SEC.
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. Forward-looking statements include, but are not limited
to, the future price of gold, the estimation of mineral reserves
and resources, realization of mineral reserve estimates, the timing
and amount of future production, the offer and sale of Common
Shares under the ATM Program, including the timing and amounts
thereof, and the use of any proceeds from the ATM Program.
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, 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
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, 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
Sandstorm’s annual report for the financial year ended December 31,
2019 and the section entitled “Risk Factors” contained in the
Company’s annual information form dated March 30, 2020 available at
www.sedar.com and most recent annual report filed on Form 40-F with
the SEC on www.sec.gov. 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.
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