VANCOUVER, March 6, 2014 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm") (NYSE MKT: SAND, TSX: SSL) is pleased to announce the successful completion of the previously announced plan of arrangement whereby Primero Mining Corp. ("Primero") has acquired all of the outstanding share of Brigus Gold Corp. ("Brigus").
Brigus' principal asset is the Black Fox mine and mill ("Black Fox") in the Timmins Gold District of Ontario, Canada. Sandstorm has a gold stream agreement to purchase 8% of the life of mine gold from Black Fox and 6.3% of the life of mine gold produced from the Black Fox Extension, at US$500 per ounce.
"The Primero acquisition results in Sandstorm's Black Fox stream being with a larger, better capitalized company, further de-risking our streaming and royalty portfolio," said President and CEO Nolan Watson. "We look forward to additional drill results from the exploration program at Black Fox."
ABOUT SANDSTORM GOLDSandstorm 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 eight 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. Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold stream agreements with Entrée Gold Inc., Luna Gold Corp., Metanor Resources Inc., Mutiny Gold Ltd., Primero Mining Corp., Rambler Metals and Mining plc., Santa Fe Gold Corp., and SilverCrest Mines Inc.