Sandstorm Metals and Energy Ltd (fka STTYF)

[Tommy]

$STTYF - $SND.V - The Colossus Is Twitching

http://seekingalpha.com/article/1515172-the-colossus-is-twitching?source=email_investing_ideas&ifp=0
$STTYF - $SND.V - The Colossus Is Twitching

http://seekingalpha.com/article/1515172-the-colossus-is-twitching?source=email_investing_ideas&ifp=0

..."An unusual decision was taken by the company to develop this mine without prior preparation of a NI 43-101 compliant reserve statement. The nature of the mineralization at Serra Pelada creates significant uncertainties with reporting to this standard and release of a NI 43-101 report has been postponed to later this year when sufficiently closely spaced drill data from underground exploration will be available, and results from the bulk sample can be incorporated. For potential investors this represents an additional risk. However, it did not stop Sandstorm Gold (SAND) to participate in the financing of the mine by providing $60M of upfront cash toward mine development in exchange for a streaming agreement that will allow them to purchase 15% of the gold production for $400 per ounce, and 35% of the platinum for $200 per ounce. Sibling company Sandstorm Metals & Energy (STTYF.PK) paid $15M upfront in exchange for 35% of the palladium production at $100 per ounce. It can be assumed that the Sandstorms performed significant due diligence before committing to this so-called streaming arrangement which could also be taken as some re-assurance by interested investors. Colossus has the right to buy back half of the precious metal stream until April 1, 2015, at a total cost of $58.5M to the two Sandstorms." ...