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Sandstorm Gold Announces Completion of Luna Gold/JDL Gold Combination, Files Early Warning Report
NEWS PROVIDED BY
Sandstorm Gold Ltd.
Apr 05, 2017, 17:22 ET
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VANCOUVER, April 5, 2017 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) is pleased to announce that Luna Gold Corp. ("Luna Gold") and JDL Gold Corp. ("JDL Gold") have combined their businesses to create Trek Mining Inc. ("Trek"). As part of the business combination, a non-brokered private placement financing was completed for gross proceeds of C$83,419,172.

Trek is well-funded with approximately C$113 million in cash and no cash debt, and is advancing the Aurizona gold project ("Aurizona" or the "Aurizona Project") to production. A feasibility study is nearing completion and the first gold pour at Aurizona is targeted for year-end 2018. Near-mine and district-scale exploration is also underway with a focus on the drill-ready targets directly along strike of the existing reserves and resources at Aurizona's past producing Piaba open pit. The greenfields exploration ground adjacent to the Aurizona Project is under option to AngloGold Ashanti Holdings plc ("AngloGold").

Sandstorm holds a 3% to 5% sliding scale net smelter returns ("NSR") royalty on Aurizona and at gold prices less than or equal to $1,500 per ounce, the royalty is a 3% NSR. In addition to the sliding scale royalty on Aurizona, Sandstorm holds a 2% NSR royalty on the greenfields property optioned to AngloGold.

EARLY WARNING REPORT

Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues, the Company is announcing the acquisition of an aggregate of 27,660,694 common shares ("Trek Shares") and 11,739,332 warrants (the "Trek Warrants") of Trek. Sandstorm acquired the Trek Shares and Trek Warrants upon the completion of the aforementioned business combination of Luna Gold and JDL Gold, and pursuant to the terms of a debt settlement agreement.

With the acquired Trek Shares and Trek Warrants, Sandstorm now holds an aggregate of 28,035,693 Trek Shares, representing 15.77% of the issued and outstanding Trek Shares. If you assume the exercise in the future of all of the Trek Warrants currently held by the Company into Trek Shares, Sandstorm would then hold 37,095,940 Trek Shares, representing approximately 19.86% of the then issued and outstanding Trek Shares, on a partially diluted basis.

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 Trek's SEDAR profile at www.sedar.com.

ABOUT SANDSTORM GOLD

Sandstorm Gold Ltd. is a gold streaming and royalty company. Sandstorm 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 155 streams and royalties, of which 20 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams and royalties.

For more information visit: www.sandstormgold.com

http://www.prnewswire.com/news-releases/sandstorm-gold-announces-completion-of-luna-goldjdl-gold-combination-files-early-warning-report-618429503.html