Mining News
Sandstorm Gold Royalties completes acquisition of Nomad Royalty Company
(Kitco News) - Sandstorm Gold Royalties (NYSE: SAND, TSX: SSL) today announced the successful completion of the previously announced acquisition of Nomad Royalty Company.
Sandstorm said it issued approximately 74.4 million common shares of the company to former Nomad shareholders equal to an exchange ratio of 1.21 Sandstorm shares for each common share of Nomad.
According to a press-release, with completion of the acquisition, existing Sandstorm and former Nomad shareholders are expected to own approximately 73% and 27% of the outstanding shares of the pro forma Sandstorm, respectively.
The company added that Nomad is a high-growth precious metals-focused royalty company with a portfolio of 20 royalty and stream assets, of which seven are on currently producing mines.
Sandstorm also noted that in conjunction with the previously announced closing of the BaseCore transaction, the transactions are expected to provide several benefits to the company, including a substantial increase in size and scale cementing Sandstorm's status as the highest-growth and most liquid mid-tier royalty and streaming company.
The company said that the transactions resulted in industry-leading portfolio diversification with a resulting portfolio of 250 streams and royalties, of which 39 of the underlying assets are cash-flowing and no asset contributing more than 15% to the company's consensus net asset value.
|
|
Victoria Gold reports net income of $17.1 million in Q2, reduces production expectations for 2022 |
More importantly, Sandstorm pointed out that the transactions bolster financial strength and capital markets profile with a strong balance sheet, increased public float, liquidity, and access to capital, adding that the company is expected to have a greater capacity to pursue further growth and return capital to Sandstorm shareholders.
President and CEO Nolan Watson commented, "The completion of the Nomad acquisition is another exciting milestone for Sandstorm shareholders this year. We began 2022 with a bold vision for Sandstorm and this is the next step in the growth strategy for the company. We welcome the new shareholders of Sandstorm and appreciate your support as we continue to grow and build Sandstorm into the go-to precious metals royalty and streaming royalty company."
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.
