Equinox Gold and Sandstorm Gold launch Sandbox Royalties, a diversified metals royalty company
According to a press-release, Equinox and Sandstorm have each entered into definitive purchase and sale agreements with Rosedale Resources whereby Rosedale will acquire a portfolio of royalties from Equinox for consideration of $28.4 million in common shares of Rosedale and from Sandstorm for consideration of $65 million comprising $32.1 million in common shares of Rosedale and $32.9 million in a promissory note convertible into common shares of Rosedale.
Upon closing, Rosedale intends to change its corporate name to Sandbox Royalties, which will hold a portfolio of 23 metals royalties across a range of assets and jurisdictions, including the existing royalties held by Rosedale.
"Sandbox will have exposure to a range of resource royalties including gold, silver, copper, zinc, graphite and uranium, immediate cash flow from producing royalties, a strong treasury and significant leverage to strengthening metal prices and resource growth," Equinox said.
The royalties acquired from Sandstorm and Equinox will contribute meaningful portfolio diversification through several producing and development stage assets, the company added.
Sandstorm and Equinox will hold a 34% and 30% basic interest, respectively, in Sandbox, providing the opportunity to participate in and facilitate future growth of Sandbox.
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Equinox Gold is a Canadian mining company operating entirely in the Americas, with six operating gold mines, a mine in commissioning, and a plan to achieve more than one million ounces of annual gold production.
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.
Rosedale Resources is a private Canadian metals royalty company holding a diverse portfolio of 11 exploration and development stage royalties on assets in Peru, Africa and Asia.