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Jan. 14, 2014 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm Gold" or "Sandstorm") (NYSE MKT: SAND) (TSX: SSL) announces that Colossus Minerals Inc. ("Colossus") has approved a proposal received from Sandstorm and a group of holders of Colossus Convertible Gold Linked Notes (the "Gold Linked Notes"). The terms of the proposal provide for a restructuring of Colossus' capital structure through the conversion of its Gold Linked Notes and its precious metals purchase agreements with Sandstorm into equity (the "Restructuring"). Colossus has filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (
Canada), which is intended to enable Colossus to pursue the Restructuring and a sale process with the benefit of creditor protection and under Court-supervision.
As part of the Restructuring, Sandstorm has agreed to cancel its gold and platinum purchase agreements (previously announced on
September 19, 2012), in exchange for a 1.6% net smelter returns royalty ("NSR") and common shares of Colossus. If the Restructuring is completed, Sandstorm expects to own approximately 31% of the outstanding common shares of Colossus.
Sandstorm Metals & Energy Ltd. ("Sandstorm Metals"), via a back-to-back agreement with Sandstorm Gold, held a palladium purchase agreement (the "Palladium Stream") with Colossus and has agreed to cancel the Palladium Stream in exchange for a 0.4% NSR and approximately 8% of the outstanding common shares of Colossus.
For more details on the Colossus Restructuring, please visit
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 8 gold streams and twenty-seven 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.