{"id":1109290,"date":"2019-04-04T21:39:09","date_gmt":"2019-04-04T21:39:09","guid":{"rendered":"http:\/\/resourceworld.com\/?p=55288"},"modified":"2019-04-04T21:39:09","modified_gmt":"2019-04-04T21:39:09","slug":"sandstorm-unveils-nevada-gold-stream-deal","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1109290","title":{"rendered":"Sandstorm unveils Nevada gold stream deal"},"content":{"rendered":"
\"\"<\/a><\/p>\n

The Relief Canyon Mine crusher. Source: Americas Silver Corp.<\/p>\n<\/div>\n

Sandstorm Gold Ltd.<\/strong> [SSL-TSX; SAND-NYSE American] said Thursday April 4 that it has acquired a 4% gold stream on Americas Silver Corp.<\/strong>\u2019s [USA-TSX; USAS-NYSE American] Relief Canyon heap leach project in Nevada.<\/p>\n

The mine is expected to begin production by the end of 2019, delivering about 5.9 million ounces per year to Sandstorm for 5.5 years.<\/p>\n

Sandstorm shares advanced on the news, rising 0.70% or $0.05 to $7.19. The shares trade in a 52-week range of $7.84 and $4.61.<\/p>\n

Sandstorm is a royalty financing company that seeks to acquire gold and other metals purchase agreements and royalties from companies that have advanced stage projects or operating mines.<\/p>\n

In return for making upfront payments to acquire a gold stream, Sandstorm receives the right to purchase, at a fixed price per ounce, or at a fixed percentage of the spot price, a percentage of the mine\u2019s gold, silver and other commodity production for the life of the mine.<\/p>\n

The company has a portfolio of over 188 royalties, producing cash flow from 20 producing mines. Other company assets include a US$225 million credit facility.<\/p>\n

The company sold approximately 57,600 attributable gold equivalent ounces in 2018, the highest yearly total in the company\u2019s history.<\/p>\n

Approximately 85% of the ounces came from operations run by major and mid-tier mining companies, Sandstorm said in a press release.<\/p>\n

Sandstorm recently expanded its portfolio by acquiring a 0.9% net smelter return royalty interest on precious metals produced from Lundin Gold Inc.<\/strong>\u2019s [LUG-TSX, OMX] Fruta del Norte mine in Ecuador.<\/p>\n

Sandstorm said the royalty was acquired form a private third party for US$32.75 million in cash and covers more than 644 km2<\/sup>, including all 30 mining concessions held by Lundin Gold.<\/p>\n

Under the agreement with Americas Silver Corp., Sandstorm is paying US$25 million in cash for the stream, providing a US$10 million four-year convertible debenture yielding 4% with a $2.14 conversion price and investing US$7.5 million in Americas Silver equity at $2.08 per share.<\/p>\n

Starting 60 months after commencement of the delivery period, Sandstorm will receive 4.0% of the gold and silver produced at the Relief Canyon Mine for the life of the mine (the 4.0% stream) and will pay Americas Silver 30% – 65% of the spot price of gold and silver for each ounce of gold and silver delivered.<\/p>\n

The ongoing payment percentage varies by concession and is calculated based on the pre-existing royalty burden. Americas Silver may elect to reduce the 4.0% stream and NSR royalty on the Relief Canyon property by delivering 4,000 ounces of gold to Sandstorm<\/p>\n

The Relief Canyon Project is a past-producing open pit mine located at the southern end of the Pershing Gold and Silver Trend. Proven and probable reserves as of May 2018 stood at 635,000 contained ounces.<\/p>\n

Average annual production is forecast at 91,000 ounces of gold over a 5.6-year mine life at an average all-in-sustaining cost of US$801 per ounce. Only 20% of the 11,700-hectare land package has been explored to date.<\/p>\n","protected":false},"excerpt":{"rendered":"

Sandstorm Gold Ltd. [SSL-TSX; SAND-NYSE American] said Thursday April 4 that it has acquired a 4% gold stream on Americas Silver Corp.’s [USA-TSX; USAS-NYSE American] Relief Canyon heap leach project… Read more »<\/a><\/span><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[622],"tags":[48],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1109290"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1109290"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1109290\/revisions"}],"predecessor-version":[{"id":1109291,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1109290\/revisions\/1109291"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1109290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1109290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1109290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}