Sandstorm Gold Ltd. (“Sandstorm Gold Royalties” or the “Company”)
(NYSE: SAND, TSX: SSL) has entered into an agreement with a
syndicate of underwriters led by BMO Capital Markets and Scotiabank
(the “Underwriters”) under which the Underwriters have agreed to
buy from the Company, on a bought deal basis, 15,700,000 common
shares (the “Common Shares”), at a price of US$5.10 per Common
Share for gross proceeds to the Company of approximately US$80
million (the “Offering”). The Company has granted the Underwriters
an option, exercisable at the offering price for a period of 30
days following the closing of the Offering, to purchase up to an
additional 15% of the Offering to cover over-allotments, if any.
The Offering is expected to close on or about October 4, 2022 and
is subject to the Company receiving all necessary regulatory
approvals.
The Company plans to use the net proceeds of the Offering for
future acquisitions of streams and royalties, the repayment, from
time to time, of amounts drawn under the Company’s revolving credit
facility, and other general working capital purposes.
The Common Shares will be offered by way of a prospectus
supplement to be filed in all provinces and territories of Canada,
other than Quebec, pursuant to the Company’s base shelf prospectus
dated September 22, 2022, and will be offered in the United States
pursuant to an effective registration statement filed under the
Canada/U.S. multi-jurisdictional disclosure system (File No.
333-237807), and on a private placement basis in certain
jurisdictions outside Canada and the United States pursuant to
applicable prospectus exemptions. Such documents contain important
information about the Offering. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the Common Shares in any
jurisdiction in which such offer, solicitation, or sale would be
unlawful prior to registration or qualification under the
securities laws of that jurisdiction.
Copies of the base shelf prospectus dated September 22, 2022 and
prospectus supplement relating to the Offering, when available, may
be obtained upon request in Canada by contacting BMO Nesbitt Burns
Inc. (“BMO Capital Markets”), Brampton Distribution Centre C/O The
Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S
6H2 by telephone at 905-791-3151 Ext 4312 or by email at
torbramwarehouse@datagroup.ca, and in the United States by
contacting BMO Capital Markets Corp., Attn: Equity Syndicate
Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, or
by telephone at (800) 414-3627 or by email at
bmoprospectus@bmo.com. Copies of the base shelf prospectus and
prospectus supplement, when available, can be found under the
Company’s profile on SEDAR at www.sedar.com, and a
copy of the registration statement and the prospectus supplement
can be found on EDGAR at www.sec.gov.
CONTACT INFORMATION
For more information about Sandstorm Gold Royalties, please
visit our website at www.sandstormgold.com or
email us at info@sandstormgold.com.
NOLAN
WATSON |
|
MARK
KLAUSEN |
PRESIDENT & CEO |
|
INVESTOR RELATIONS |
604 689
0234 |
|
604 628
1164 |
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 holds a portfolio of 250 royalties, of which 39 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 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,
including, but not limited to, the anticipated terms of the
Offering; the exercise of the over-allotment option; the expected
closing date of the Offering; the receipt of all necessary
regulatory approvals to effect the Offering; and the expected use
of net proceeds from the Offering, which ultimately remains subject
to the Company’s discretion, as well as the business, operations
and financial performance and condition of Sandstorm Gold
Royalties. 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,
2021 and the section entitled “Risk Factors” contained in the
Company’s annual information form dated March 31, 2022 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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