This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sandstorm Gold Provides Update On Serra Pelada

VANCOUVER, Dec. 6, 2013 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm") (NYSE MKT: SAND, TSX: SSL) announces a status update related to Colossus Minerals Inc. ("Colossus" or "the Company") and their efforts to secure funding for the balance of the expenses required to commence production at the Serra Pelada Mine in Brazil ("Serra Pelada").

In a press release dated November 14, 2013, Colossus announced that development delays at Serra Pelada had resulted in a change to the anticipated production start date at the mine and that additional capital would be needed. The management team at Colossus has estimated that US$70 million is required in order to meet the Company's existing obligations and progress Serra Pelada to production.

At this time, the board of directors of Colossus has decided to cease underground development at Serra Pelada in order to reduce ongoing costs. The Company intends to continue with the dewatering program at the mine and commence underground definition drilling in connection with the preparation of a National Instrument 43-101 compliant resource estimate for Serra Pelada. Roscoe Postle Associates Inc. has been hired to complete the resource estimate which is expected by the end of December, 2013.

Given that Colossus has material negative working capital, the Company will need additional funding in order to proceed with the strategy outlined by its board of directors. Sandstorm will be reviewing its investment in the Company for a partial or full impairment as there can be no assurance that adequate funding will be available for Colossus in the future.

ABOUT SANDSTORM GOLD

Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides upfront financing to gold mining companies that are looking for capital and in return, receives a gold streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the gold produced from a mine, for the life of the mine, at a fixed price per ounce. Sandstorm has acquired a portfolio of nine gold streams and twenty-five gold royalties, of which thirteen of the underlying mines are producing gold. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,067.33 +43.27 0.24%
S&P 500 2,115.61 +7.32 0.35%
NASDAQ 5,024.1360 +18.7450 0.37%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs