Sandstorm Resources Ltd. (CVE:SSL) enters into a gold purchase agreement with Metanor Resources Inc. (CVE:MTO).
Sandstorm Resources Ltd. (TSXV:SSL) enters into a gold purchase agreement with Metanor Resources Inc. (TSXV:MTO).
The press release is quoted as saying:
Sandstorm has agreed to purchase 20% of the life of mine gold produced from Metanor’s Bachelor Lake Gold Project (“Bachelor Lake Mine”) located in Quebec, Canada for US$20 million plus ongoing per ounce payments equal to the lesser of US$500 (the “Per Ounce Payments”) and the then prevailing market price per ounce of gold. Sandstorm will be making staged payments to Metanor as follows: (i) US$5 million, from cash on hand, upon signing of the agreement, (ii) US$9 million, from cash on hand, once Metanor has achieved certain funding conditions, expected to be completed in the first half of 2011, and (iii) US$6 million, from operating cash flow, on September 1, 2011.