Business
Tower Announces Financing Package with Sandstorm Gold and Concurrent Private Placement
(via TheNewswire) 1 VANCOUVER B.C. / TheNewswire / March 15 2017 - Tower Resourc...
About this update from Tower Resources Ltd.
[{"type":"text","content":"Tower Announces Financing Package with Sandstorm Gold and Concurrent Private Placement(via TheNewswire)\n \n \n1\n\n \n \nVANCOUVER B.C. / TheNewswire / March 15 2017 - Tower Resources Ltd. (\"Tower\" or the \"Company\") is pleased to announce it has signed a $1 million financing package (\"Transaction\") with Sandstorm Gold Ltd. (\"Sandstorm\") (NYSE MKT:SAND) including a royalty investment and private placement. The Company has also agreed to a concurrent non-brokered private placement for proceeds of up to $2.7 million. All currency amounts in Canadian dollars.\n\n \n \nTransaction and Private Placement Highlights\n\n \n \n\n\n-Provides multi-year funding for exploration of Tower's Rabbit North, Nechako Gold, and More Creek, properties;\n\n\n\n-Total of up to $3.2 million in new equity financing of which Sandstorm will subscribe for $500,000;\n\n\n\n-Sandstorm will pay $500,000 cash consideration for a 2% net smelter returns royalty (\"NSR\") on Tower's Rabbit North Extension, Nechako Gold and More Creek properties;\n\n\n\n-Tower will have the option to buy-back 50% (total 1%) of each new NSR sold to Sandstorm for $500,000 per property;\n\n\n\n-Tower will assign Sandstorm the right to purchase 1% of the underlying NSR on Tower's Rabbit North property.\n\n\n\n \n \nMark Vanry, President and CEO noted, \"We are extremely happy to have Sandstorm as an investor in Tower and believe that this transaction is an endorsement of both Tower's people and properties. \"The funds provided by the sale of the royalty as well as the private placement will allow Tower to aggressively explore each of our core assets in BC and opportunistically add prospective properties to our pipeline.\" \n\n \n \nSandstorm Transaction\n\n \n \nAs part of the financing package, Tower will receive a $500,000 payment in return for granting Sandstorm a two percent (2%) NSR on Tower's Rabbit North Extension, Nechako Gold and. More Creek properties. Tower will have the option to buyback one percent (1%) of the NSR on each of the properties from Sandstorm for cash consideration of $500,00 per property. In addition, Tower will assign to Sandstorm the right to purchase one percent (1%) of Tower's two percent buyback right underlying the Rabbit North property. Concurrent with the NSR investment, Sandstorm will subscribe for 3.44 million units of a private placement at...