Sandstorm, Metanor Amend Gold-Stream Agreement
Sandstorm Gold Ltd. (NYSE MKT: SAND, TSX: SSL) and Metanor Resources Inc. (TSXV: MTO) have amended Sandstorm’s Bachelor Mine gold stream, the companies report. Beginning Oct. 1, Sandstorm will purchase 20% of the gold produced from the Bachelor Lake mine at $500 per ounce up to 12,000 ounces, at which time the gold stream will convert into a 3.9% net-smelter-returns royalty. Metanor has agreed to sell a minimum of 1,500 ounces of gold to Sandstorm each quarter until the 12,000-ounce threshold has been reached. Sandstorm will also receive a 3.9% NSR royalty on Metanor’s Barry project and $2 million in Metanor shares. Metanor will have an option to reduce the royalties by making a cash payment. The old deal called for Metanor to sell 20% of its gold production, Metanor says. “During 2017, Metanor has undergone a major restructuring with goals to achieve sustainable production at Bachelor and to effectively develop their Barry project. As part of the restructuring process, new shareholders have come in, the company has been recapitalized and there have been changes at the management and board level,” says Nolan Watson, Sandstorm president and chief executive officer. “The gold stream amendment is another step in Metanor’s progression, and I think the structure that we’ve agreed to makes sense for both companies.” Greg Gibson, chairman and chief executive of Metanor, says the company plans to increase its drill campaign on the Bachelor property.