VANCOUVER, April 24, 2014 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND) (TSX: SSL) has provided a US$10 million loan (the "Loan") to Luna Gold Corp. ("Luna") (TSX: LGC) in accordance with its previously announced commitment to issue a non-revolving loan facility to Luna (see press release dated September 10, 2012). Luna has drawn down on the full amount of the Loan and will pay interest at a rate of 12% per annum, subject to certain conditions, with the Loan maturing on June 30, 2017. The proceeds from the Loan will be used towards a brownfield exploration program ("Drilling Program") which Luna plans to commence in the second half of 2014. Under the terms of the Loan, Luna will have an interest free period of up to 16 months on the portion of the Loan that funds brownfield exploration.
The primary objective of the Drilling Program is to expand resources and reserves, specifically targeting new saprolite mineralization through step-out drilling at the Piaba, Boa Esperança, Conceição and Ferradura deposits, all of which are open along strike and at depth. In addition, the results of the Drilling Program will assist in the determination of the next steps for the Phase I and Phase II expansion scenarios which includes sterilizing future footprints for plant expansion, tailings and waste storage areas.
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 eight gold streams and twenty-seven gold royalties, thirteen of which are producing gold. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams.