Business
Sandstorm Gold Announces Agreement to Sell US$18 Million in Securities of Trek Mining as Part of Announced Business Combination
Sandstorm Gold Announces Agreement to Sell US$18 Million in Securities of Trek Mining as P...
About this update from Silver Sands Resources Corp.
[{"type":"text","content":"\n\n\n\nSandstorm Gold Announces Agreement to Sell US$18 Million in Securities of Trek Mining as Part of Announced Business Combination\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Oct. 25, 2017\n\n\n\nVANCOUVER, Oct. 25, 2017 /CNW/ - Sandstorm Gold Ltd. (\"Sandstorm\" or the \"Company\") (NYSEAMERICAN: SAND, TSX: SSL) has entered into an agreement to sell US$18.2 million in debt and equity securities of Trek Mining Inc. (\"Trek Mining\") to Ross Beaty (the \"Sale Agreement\") conditional upon the closing of the announced business combination between Trek Mining, NewCastle Gold Ltd. (\"NewCastle\") and Anfield Gold Corp. (\"Anfield\") (the \"Combination\"). The combined entity intends to operate under the name Equinox Gold Corp. (\"Equinox Gold\") and will be led by Ross Beaty as Chairman and Christian Milau as CEO. \n\n— Sandstorm Agrees to Sell Trek Mining Securities\n\nAs part of the Combination between Trek Mining, NewCastle and Anfield, Sandstorm has agreed to sell US$15.0 million of Trek Mining convertible debentures and US$3.2 million of Trek Mining shares, at a price of C$1.02 per share, to Ross Beaty. The Sale Agreement is subject to the closing of the proposed Combination. \n\nSandstorm President and CEO, Nolan Watson commented, \"The announced combination between Trek Mining, NewCastle and Anfield is an encouraging development for Sandstorm shareholders. Sandstorm has royalties on properties that will be part of the Equinox Gold entity, and the combined company will be well financed to advance its assets into production. In addition, the monetization of a significant portion of our Trek Mining securities is consistent with our stated plan to sell non-core assets and use the capital raised to continue growing our royalty portfolio.\"\n\nSandstorm's royalty interests on projects owned by the combined company will include:\n\n\na 3.0% - 5.0% sliding scale net smelter returns (\"NSR\") royalty on the Aurizona project. At gold prices less than or equal to US$1,500 per ounce, the royalty is a 3% NSR.\na 2.0% NSR royalty o...