Sandstorm, Mariana Announce Planner Merger
Sandstorm Gold Ltd. (NYSE MKT: SAND; TSX: SSL) and Mariana Resources Ltd. (TSXV, AIM: MARL) announce plans for Sandstorm to acquire Mariana in a move that officials say will create a mid-tier royalty and streaming company. Officials say the combined group would have a diversified portfolio of 155 streams and royalties, including 20 producing, 23 development-stage, 26 advanced exploration-stage and 86 exploration-stage assets. This would also include a 30% joint-venture interest in Hot Maden, a gold-copper development-stage project, in Turkey. Sandstorm says it intends to move from equity participation in the joint venture to converting the group’s interest into a gold stream. Nolan Watson, president and chief executive officer of Sandstorm, would hold these titles for the combined company. Under the deal, Mariana shareholders will receive 28.75 pence in cash and 0.2573 of a Sandstorm share for each Mariana share held. Mariana shareholders would collectively own 19% of the ordinary share capital in the combined group. Shareholders in both entities must approve the deal.