VANCOUVER, Aug. 8, 2014 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) and Luna Gold Corp. ("Luna"), have closed the previously announced non-brokered private placement (the "Placement"), whereby Sandstorm has purchased 19.5 million common shares of Luna (the "Placement Shares") at a price of CAD$1.02 per Placement Share. Sandstorm now holds 28 million common shares of Luna, representing approximately 19.8% of the issued and outstanding shares of Luna.
Pursuant to the Placement, Sandstorm was also granted the right (for so long as Sandstorm owns greater than 15% of Luna) to maintain its ownership percentage through future private placements or public offerings by Luna. Sandstorm was also granted the right to appoint one member to Luna's Board of Directors (the "Board") and, accordingly, has appointed David Awram, Senior Executive Vice President of Sandstorm, to the Board. In addition, Mr. Luis Baertl has stepped down as Chairman of Luna's Board and has been succeeded as Chairman by Luna's current lead independent director, Steven Krause.
The Placement Shares purchased by Sandstorm are subject to a four month plus one day hold period. The proceeds from the Placement will be used by Luna for expenditures related to the Aurizona mine, ongoing brownfields and greenfields exploration at and around the Aurizona mine, and for general working capital purposes.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. A gold stream 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 streams and twenty-eight royalties, fourteen of which are producing gold. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams. For more information visit: www.sandstormgold.com CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION