Exhibit 99.1
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PRESS RELEASE
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JUNE 25, 2019 | VANCOUVER,
BC
SANDSTORM GOLD ROYALTIES PROVIDES ASSET AND CORPORATE
UPDATE
Sandstorm Gold Ltd. (“Sandstorm Gold
Royalties”, “Sandstorm” or the
“Company”) (NYSE American: SAND, TSX: SSL) is pleased
to provide an update related to share repurchases under the
Company’s Normal Course Issuer Bid (“NCIB”),
monetization of non-core equity investments, and recent
developments from the Company’s royalty
portfolio.
SHARE BUYBACK PROGRAM
During the fourth quarter of 2018, Sandstorm announced a share
buyback program to purchase up to 18.3 million of the
Company’s common shares. Since the announcement, Sandstorm
has purchased approximately 7.9 million
shares of the Company.
For more information regarding Sandstorm’s NCIB, see
Sandstorm’s press releases dated November 15, 2018 and April
2, 2019 at www.sandstormgold.com
or on Sandstorm’s Sedar profile
at www.sedar.com.
The actual number of common shares that may be purchased and the
timing of such purchases will be determined by the Company.
Decisions regarding purchases will be based on market conditions,
share price, best use of available cash, and other factors. Any
securities acquired under the NCIB will be cancelled.
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TSX: SSL
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NYSE AMERICAN: SAND
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SANDSTORM MONETIZES NON-CORE EQUITY INVESTMENTS
Sandstorm recently sold approximately US$17 million of its equity
investments, representing a continuation of the Company’s
strategy to monetize non-core assets. Proceeds from the sale were
largely used to pay down debt drawn on the Company’s
revolving credit facility.
HOD MADEN PROGRESS UPDATE
Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”), the
majority owner and operator of the Hod Maden project in Turkey, has
been steadily advancing the project during 2019. A gap analysis and
trade-off studies on Hod Maden were completed during the first
quarter of 2019 which will contribute to the Feasibility Study
work, which began during the second quarter of 2019. The
Feasibility Study contract was awarded to GR Engineering Services
and AMC Consultants.
In conjunction with the Feasibility Study, an Environmental Impact
Assessment has been submitted and a public participation meeting
was successfully conducted as part of the permitting
process.
The Feasibility Study is expected to be completed in the second
quarter of 2020, with first production projected for the fourth
quarter of 2022.
Sandstorm has a 30% net profits interest and a 2.0% net smelter
returns (“NSR”) royalty on the Hod Maden
project.
AURIZONA POURS FIRST GOLD IN MAY 2019
Equinox Gold Corp. (“Equinox Gold”) announced on May
14, 2019 that the first gold pour took place at the Aurizona Gold
Mine in Brazil. Equinox Gold also announced the receipt of the
License to Operate permit, the final operating permit required from
the Maranhão State Environmental Agency.
The Aurizona Gold Mine is expected to
reach commercial production around the end of the second quarter of
2019.
For more information, visit the Equinox Gold website at
www.equinoxgold.com
and see the press release dated May
14, 2019. Sandstorm has a 3.0%
- 5.0%
sliding scale NSR royalty on the Aurizona project. At gold prices
less than or equal to US$1,500 per ounce, the royalty is a
3.0%
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.
ERDENE INTERSECTS 112.0 METRES OF 5.9 G/T GOLD
Erdene Resource Development Corp. (“Erdene”) announced
results from their ongoing 2019 drill program at the Khundii Gold
Project located in Mongolia. An 1,800 metre drill program was
conducted in April 2019 to increase confidence in the existing
resource, confirm gold grades, and expand Bayan Khundii
mineralization. The results will be incorporated into the recently
launched Pre-Feasibility Study and used in planning the next phase
of the 2019 exploration drill program.
Highlights from the April drill program include:
►
MIDFIELD ZONE
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BKD-261: 112.0 metres of 5.9 grams per tonne
(“g/t”) gold from 13.0 metres; and
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BKD-262: 14.0 metres of 14.1 g/t gold from 9.0
metres.
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►
NORTH MIDFIELD
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BKD-260: 23.3 metres of 4.4 g/t gold from 97.6 metres;
and
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BKD-259: 2.0 metres of 39.0 g/t gold from 202.0
metres.
►
STRIKER WEST
●
BKD-265: 16.0
metres of 1.1 g/t gold from 28.0
metres and 3.0 metres of 40.0 g/t gold from 142.0
metres.
For more information and full drill results, visit the Erdene
website at www.erdene.com
and see the press release dated May
13, 2019. Sandstorm has a 1.0% NSR royalty on Erdene’s Bayan
Khundii and Altan Nar properties.
KINROSS COMPLETES SCOPING STUDY ON LOBO-MARTE
Kinross Gold Corporation (“Kinross”) announced that
they have completed a Scoping Study on the Lobo-Marte project in
Chile. The Scoping Study estimates a mine life that could extend
more than 10 years, with total life of mine production of
approximately 4.1 million gold ounces at a grade of 1.2 g/t gold.
Kinross is now progressing to a Pre-Feasibility study with
permitting efforts also underway. The Pre-Feasibility study is
expected to be completed by mid-2020.
For more information, visit the Kinross website at
www.kinross.com
and see the press release dated May 7,
2019. Sandstorm has a 1.05% NSR royalty on the Lobo-Marte
project.
BONTERRA INTERSECTS 12.8 G/T GOLD OVER 5.6 METRES AT
MOROY
Bonterra Resources Inc. (“Bonterra”) announced results
from their ongoing drill program at the Gladiator, Barry and Moroy
deposits located in Quebec, Canada. Bonterra currently has five
drills operating at the properties, which are testing a combination
of resource expansion and earlier stage exploration
targets.
Highlighted drill results include:
►
BARRY
●
MB-19-209: 4.2 metres of 5.1 g/t gold from 206.7 metres;
and
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MB-19-211: 1.5 metres of 6.3 g/t gold from 453.7
metres.
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►
MOROY
●
MY-19-155: 5.6 metres of 12.8 g/t gold from 256.3 metres;
and
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MY-19-158: 5.4 metres of 12.2 g/t gold from 70.5
metres.
For more information and complete drill results, visit the Bonterra
website at www.bonterraresources.com
and see the press release dated June
12, 2019.
Sandstorm receives a minimum of 1,500 ounces of gold per quarter
from Bachelor Lake until 12,000 ounces of gold have been delivered.
The gold stream will then convert to a 3.9% NSR royalty. In
addition to this, Sandstorm holds a 1.0% NSR royalty on Bachelor
Lake. When combined with Sandstorm’s existing royalties, the
Company will then hold a total 4.9% NSR on Bachelor Lake/Moroy
project, a 3.9% – 4.9%
NSR on the Barry project and a 1% NSR on a portion of the Gladiator
project.
SANDSTORM FILES EARLY WARNING REPORT
Pursuant to National Instrument 62-103 - The Early Warning System
and Related Take Over Bid and Insider Reporting Issues, Sandstorm
is announcing the acquisition of an aggregate of 3,498,000 common
shares (the “Entrée Acquired Shares”) of
Entrée Resources Ltd. (“Entrée”),
representing approximately 2.0% of the outstanding common shares of
Entrée (the “Entrée Shares”).
Prior to the acquisition of the Entrée Acquired Shares,
Sandstorm held 28,643,880 Entrée Shares as well as warrants to
purchase an additional 457,317 Entrée Shares
(“Entrée Warrants”), representing approximately
16.4% of the outstanding Entrée Shares on a non-diluted basis.
Assuming the exercise of all 457,317 Entrée Warrants held by
the Company, Sandstorm would have previously held an aggregate of
29,101,197 Entrée Shares, representing approximately 16.6% of
the outstanding Entrée Shares (on a partially diluted basis).
Upon completion of the acquisition of the Entrée Acquired
Shares, an aggregate 32,141,880 Entrée Shares are now owned
directly by Sandstorm, representing approximately 18.4% of the
outstanding Entrée Shares. Assuming the exercise of the
Company´s 457,317 Entrée Warrants, the Company would then
hold 32,599,197 Entrée Shares, representing approximately
18.6% of the outstanding Entrée Shares (on a partially diluted
basis).
The Entrée Acquired Shares were acquired by Sandstorm on the
open market over the facilities of the Toronto Stock Exchange and
other published markets for the Entrée Shares at prices
ranging from C$0.44 to C$0.46 per Entrée Acquired Share. The
acquisition of the Entrée Acquired Shares by Sandstorm was
effected for investment purposes. Sandstorm may from time to time
acquire additional securities of Entrée, dispose of some or
all of the existing or additional securities it holds or will hold,
or may continue to hold its current position.
The early warning report, as required under National Instrument
62-103, contains additional information with respect to the
foregoing matters and will be filed by the Company on
Entrée’s SEDAR profile at www.sedar.com.
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QP
QualifiedPerson
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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.
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CONTACT INFORMATION
For more information about Sandstorm Gold Royalties, please visit
our website at www.sandstormgold.com
or email us at info@sandstormgold.com.
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NOLAN WATSON
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KIM FORGAARD
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PRESIDENT & CEO
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INVESTOR RELATIONS
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604 689 0234
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604 628 1164
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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 188 royalties, of which 21 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, and the
timing and amount of estimated future production. 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.
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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, 2018 and the section entitled “Risk
Factors” contained in the Company’s annual information
form dated March 21, 2019 available at www.sedar.com. 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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