Sandstorm Gold Acquires Royalty on Diavik Diamond Mine
March 24, 15
(IDEX Online News) – Sandstorm Gold Ltd. has acquired a 1 percent gross proceeds royalty over property in Lac de Gras in the Northwest Territories, Canada, including property constituting the Diavik Diamond Mine operated by Rio Tinto plc.
Sandstorm acquired the Diavik Mine Royalty from IAMGOLD Corporation for $52.5 million in cash and 3 million warrants of Sandstorm. The warrants have a 5 year term, a strike price of $4.50 per Sandstorm common share and will be exercisable following initial production from Diavik A21 pipe.
“Adding a royalty from the world-class Diavik Mine brings approximately $7 million-$8 million per annum in additional long-term, stable cash flows to Sandstorm's portfolio," said president and CEO Nolan Watson.
Sandstorm Gold Ltd. is a gold streaming and 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. Sandstorm has acquired a portfolio of 58 streams and royalties, of which 15 of the underlying mines are producing.