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Sandstorm Gold Announces Merger of Luna Gold & JDL Gold
Sandstorm Gold Announces Merger of Luna Gold & JDL Gold Sandstorm Gold Announc...
About this update from Silver Sands Resources Corp.
[{"type":"text","content":"\n\n\n\nSandstorm Gold Announces Merger of Luna Gold & JDL Gold\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\nSandstorm Gold Announces Merger of Luna Gold & JDL Gold\nCanada NewsWire\nVANCOUVER, Feb. 1, 2017\n\n\n\nVANCOUVER, Feb. 1, 2017 /CNW/ - 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\") have entered into an arrangement agreement (the \"Agreement\") to combine their businesses, creating a multi-asset mining company (the \"Transaction\"). Under the terms of the Agreement, JDL will acquire all of the outstanding shares of Luna Gold pursuant to a plan of arrangement. The combined company intends to change its name to Trek Mining Inc. (\"Trek\" or \"Trek Mining\") with Christian Milau from Luna Gold as CEO and Executive Director and Greg Smith from JDL as President and Executive Director. \n\nTrek Mining will be well-funded with approximately US$50 million in cash and no cash debt, and will be strongly positioned to advance Luna Gold's Aurizona gold project (\"Aurizona\" or the \"Aurizona Project\") to production. 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. The Transaction is also expected to accelerate exploration at Aurizona with a focus on the drill-ready targets directly along strike of the existing reserves and resources at the Piaba open pit. In addition to the sliding scale royalty on Aurizona, Sandstorm holds a 2% NSR royalty on greenfields properties owned by Luna Gold. The greenfields exploration ground is adjacent to the Aurizona Project and is under option to AngloGold Ashanti Holdings plc (\"AngloGold\"). \n\nConcurrent with the closing of the Transaction, the term debt facility that is due from Luna to Sandstorm in the amount of US$20 million plus accrued interest, will be settled in equity or a combination of cash and equity of Trek Mining. Sandstorm will continue to hold the US$30 million conve...