Blueprint
NOVEMBER 21,
2019 | VANCOUVER,
BC
SANDSTORM GOLD ROYALTIES PROVIDES ASSET UPDATES
Sandstorm Gold Ltd. (“Sandstorm Gold
Royalties”, “Sandstorm” or the
“Company”) (NYSE American: SAND, TSX: SSL) is pleased
to provide recent development and exploration updates from the
Company’s royalty properties and an update on the share
buyback program.
LUNDIN GOLD RECEIVES FINAL PERMITS FOR FRUTA DEL NORTE AND
ANNOUNCES FIRST GOLD PRODUCTION
Lundin Gold Inc. (“Lundin Gold”) received the final two
permits required to move the Fruta del Norte project into
production and on November 16th,
produced the first doré bar from the gravity circuit.
Production of the gold concentrate is well advanced and
commissioning of the carbon in leach circuit is nearing completion.
Commercial production is anticipated to be during the second
quarter of 2020.
For more information, visit the Lundin Gold website at
www.lundingold.com
and see the press releases dated
November 8, 2019, November 14, 2019 and November
18, 2019. Sandstorm has a 0.9%
NSR royalty on the precious metals produced from the Fruta del
Norte project.
AWALÉ RESOURCES RELEASES INITIAL RESULTS FROM MAIDEN DRILL
PROGRAM AT ODIENNÉ
Awalé Resources Limited (“Awalé”) has
released the drill results from the first two holes of its 2,500
metre drill program at the Odienné project in Cote
d’Ivoire. The drill holes represent the first drilling
completed on the 3 kilometre long gold-in-soil anomaly that forms
the Empire target at Odienné. Both drill holes contained
visible gold.
Highlights from the first two drill holes include:
●
OEDD0001: 18.2 metres of 4.9 g/t gold from 40 metres,
including 10.4 metres of 7.9 g/t gold; and
●
OEDD002: 27.0 metres of 3.1 g/t gold from 43.2 metres,
including 9.0 metres of 5.3 g/t gold.
For more information and complete drill results visit the
Awalé website at www.awaleresources.com
and see the press release dated
November 19, 2019. Sandstorm has a 2.0% NSR royalty on the
Odienné property.
LUNDIN MINING EVALUATING MINE & PLANT EXPANSION, INCREASING
EXPLORATION EFFORTS AT CHAPADA WITH 50,000 METRE DRILL
PROGRAM
Since acquiring the Chapada mine from Yamana Gold Inc. in July
2019, Lundin Mining Corporation (“Lundin Mining”) has
been optimizing the production schedule at Chapada and is
evaluating options to expand the mine and plant. A Technical Report
was recently released and based on the current throughput rate of
24 million tonnes per annum, production will continue through
2050.
In addition to the mine and plant expansion studies, Lundin Mining
has stated that exploration efforts have significantly increased at
Chapada with a 50,000 metre drill program being planned for 2020.
Exploration is largely focused on near-mine targets, and results
will be incorporated into any future expansion plans. In addition
to the drill program, Lundin Mining also plans to focus on
geophysics and a regional structural geology study.
For more information visit the Lundin Mining website at
www.lundinmining.com
and see the press releases dated
October 10, 2019 and November 7, 2019.
Sandstorm has a copper stream agreement to purchase 4.2% of the
copper produced at Chapada up to a maximum of 3.9 million pounds
annually. When 39 million pounds of copper has been delivered to
Sandstorm, the copper stream will reduce to 3.0%. Once 50 million
pounds of copper have been delivered to Sandstorm on a cumulative
basis, the stream will reduce to 1.5% of the copper produced for
the life of the mine. Sandstorm will make ongoing payments for each
pound of copper purchased equal to 30% of the spot price of
copper.
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EQUINOX GOLD COMMENCES EXPLORATION AT TATAJUBA TARGET
Equinox Gold Corp. (“Equinox Gold”) announced that an
initial 6,000 metre infill drill program has begun at the Tatajuba
target, a few kilometres from the producing Aurizona mine in
Brazil. The gold mineralization at Tatajuba is characteristically
the same as that of the Piaba gold deposit that is currently being
mined and has the potential to extend the Piaba trend by up to 4
kilometres. The drill program will focus on a 600 metre long
portion of Tatajuba, with the objective of completing a maiden
Mineral Resource Estimate in the first quarter of
2020.
During the third quarter of 2019, the Aurizona mine produced more
than 29,000 ounces of gold and realized average recoveries of
91.3%. Production is expected to increase in the fourth quarter as
Equinox Gold processes reserve grade feed sourced from the Piaba
Main pit.
For more information visit the Equinox Gold website at
www.equinoxgold.com
and see the press release dated
October 30, 2019.
Sandstorm has a 3.0% - 5.0% sliding scale net smelter returns
(“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. At gold prices between $1,500 and $2,000 per ounce, the
royalty is a 4% 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.
AMERICAS GOLD AND SILVER PROVIDE RELIEF CANYON CONSTRUCTION
UPDATE
Americas Gold and Silver Corporation (“Americas Gold and
Silver”) reported that the Relief Canyon mine development is
on track for first gold pour by the end of 2019 and commercial
production is expected by the end of the first quarter of 2020. The
leach pad construction is approximately 90% complete and initial
ore placement is targeted for mid-November.
For more information visit the Americas Gold and Silver website
at www.americas-gold.com
and see press release dated November
1, 2019.
Sandstorm has a precious metal stream agreement with Americas Gold
and Silver whereby the Company is entitled to receive approximately
32,000 ounces of gold from the Relief Canyon mine over 5.5 years
starting in April 2020, which under certain conditions may be
extended up to six months. After the fixed delivery period,
Sandstorm will purchase 4.0% of the gold and silver produced at
30%-65% of the spot price per ounce of gold and silver delivered
(the ongoing payment percentage varies by concession and is
calculated based on the pre-existing royalty burden). In addition,
Sandstorm has a 1.4%-2.8% NSR royalty on the property surrounding
the Relief Canyon mine.
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 10.9 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.
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 purchase of an aggregate of 3,495,000 common
shares (the “Entrée Purchased Shares”) of
Entrée Resources Ltd. (“Entrée”),
representing approximately 2.0% of the outstanding common shares of
Entrée (the “Entrée Shares”).
Prior to the purchase of the Entrée Purchased Shares,
Sandstorm held 32,141,880 Entrée Shares as well as warrants to
purchase an additional 457,317 Entrée Shares
(“Entrée Warrants”), representing approximately
18.4% 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
32,599,197 Entrée Shares, representing approximately 18.6% of
the outstanding Entrée Shares (on a partially diluted basis).
Upon completion of the purchase of the Entrée Purchased
Shares, an aggregate 35,636,880 Entrée Shares are now owned
directly by Sandstorm, representing approximately 20.4% of the
outstanding Entrée Shares. Assuming the exercise of the
Company´s 457,317 Entrée Warrants, the Company would then
hold 36,094,197 Entrée Shares, representing approximately
20.6% of the outstanding Entrée Shares (on a partially diluted
basis).
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The Entrée Purchased 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 between July 17,
2019 and November 21, 2019 at prices ranging from
C$0.24
to C$0.40 per Entrée Acquired Share. The purchase of the
Entrée Purchased 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.
To obtain a copy of the report, contact Kim Bergen at 604 628 1164.
Entrée’s head office is located at 1066 West Hastings
Street, Suite 1650, Vancouver, BC V6E 3X1.
The purchase of the Entrée Shares was made in reliance on the
normal course purchase exemption from the formal take-over bid
requirements in section 4.1 of National Instrument 62-104, Takeover
Bids and Issuer Bids (“NI 62-104”). The Entrée
Shares acquired, together with all of the other Entrée Shares
acquired during the 12-month period preceding this purchase, did
not exceed 5% of the number of Entrée Shares outstanding at
the beginning of such 12-month period, and the consideration paid
for any of the Entrée Shares did not exceed the market price
at the date of the purchase as determined in accordance with NI
62-104.
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.
NOLAN WATSON
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KIM (FORGAARD) BERGEN
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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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NYSE AMERICAN: SAND
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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 190 royalties, of which 23 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.
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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