Sandstorm Gold Teams with Franco-Nevada to Provide True Gold with $120 Million gold Stream
Sandstorm Gold Ltd. (NYSEMKT: SAND, TSX:SSL) announced a partnership with Franco-Nevada Corporation that will see both companies entering into a US$120 million gold stream agreement with True Gold Mining Inc. (TSXV: TGM) with respect to its Karma Project in Burkina Faso, West Africa.
Sandstorm Gold Ltd. (NYSEMKT: SAND, TSX:SSL) announced a partnership with Franco-Nevada Corporation that will see both companies entering into a US$120 million gold stream agreement with True Gold Mining Inc. (TSXV: TGM) with respect to its Karma Project in Burkina Faso, West Africa.
According to the press release:
In exchange for US$100 million in funding, True Gold is obligated to deliver 100,000 ounces of gold over five years, and thereafter an amount of refined gold equal to 6.5% of the equivalent production at the Karma Project. In addition, Sandstorm and Franco-Nevada have provided True Gold with an 18 month option to increase funding by up to US$20 million (“Increase Option”) in exchange for eight quarterly deliveries totaling up to 30,000 ounces of gold, based on the pro-rata portion of the amount drawn thereunder, starting 18 months from when the first tranche under the Increase Option is drawn down.
Sandstorm’s Senior Executive Vice President and Co-Founder, David Awram commented,:
Sandstorm is excited to partner with True Gold as their Karma Project is expected to be an economically robust project with excellent exploration upside, run by a highly experienced and capable management team. As the first syndicated gold stream, this transaction is a milestone event for the streaming and royalty sector. Streaming finance has become a mainstream source of funding in the mining industry and I expect we will see more syndicated transactions in the future.
Meanwhile, Mark O’Dea, Executive Chairman of True Gold stated:
The Franco-Nevada/Sandstorm funding package demonstrated the strongest solution in terms of cost of capital, operational flexibility, alignment of business interests and long-term partnership benefits, which we believe will provide maximum benefits to our shareholders.
MARKETS
COMMODITIES
Commodities | |||
---|---|---|---|
Gold | 1837.47 | +6.46 | |
Silver | 21.48 | +0.34 | |
Copper | 3.77 | +0.02 | |
Palladium | 1935.50 | +58.50 | |
Platinum | 915.50 | +4.50 | |
Oil | 107.81 | +0.19 | |
Heating Oil | 4.21 | -0.03 | |
Natural Gas | 6.13 | -0.09 |
DOWNLOAD FREE REPORTS
BROWSE COMPANIES BY SECTOR
- Agriculture Investing
- Phosphate Investing
- Potash Investing
- Base Metals Investing
- Copper Investing
- Iron Investing
- Lead Investing
- Nickel Investing
- Zinc Investing
- Battery Metals Investing
- Cobalt Investing
- Graphite Investing
- Lithium Investing
- Manganese Investing
- Vanadium Investing
- Critical Metals Investing
- Magnesium Investing
- Rare Earth Investing
- Scandium Investing
- Tantalum Investing
- Tellurium Investing
- Tungsten Investing
- Energy Investing
- Oil and Gas Investing
- Uranium Investing
- Gem Investing
- Diamond Investing
- Industrial Metals Investing
- Aluminum Investing
- Chromium Investing
- Coal Investing
- Molybdenum Investing
- Tin Investing
- Precious Metals Investing
- Gold Investing
- Palladium Investing
- Platinum Investing
- Silver Investing
- 3D Printing Investing
- Bitcoin Investing
- Blockchain Investing
- Cleantech Investing
- Cloud Investing
- Cryptocurrencies
- Data Investing
- Emerging Tech Investing
- Artificial Intelligence Investing
- Mobile Investing
- Robotics Investing
- Fintech Investing
- Gaming Investing
- Esports Investing
- Nanoscience Investing
- Graphene Investing
- Nanotech Investing
- Security Investing
Featured stocks
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.