Sandstorm Resources Provides Funding Update for Aurizona and Summit Projects
October 19, 2009
Vancouver, British Columbia, October 19, 2009 -- Sandstorm Resources Ltd. ("Sandstorm" or the "Corporation") (TSX-V: SSL) is pleased to announce that Luna Gold Corp. ("Luna") has successfully satisfied all material funding conditions as outlined in the gold purchase agreement between Sandstorm and Luna. As a result, Sandstorm has released from escrow, the US$17.8 million upfront payment and the 5,500,000 shares of the Corporation, to Luna. Luna's open pit Aurizona project (the "Aurizona Project") is now in progress on civil construction and mechanical-electrical assembly of the gold plant with the expectation of commissioning the mine in the second quarter of 2010. In accordance with Sandstorm's gold purchase agreement with Luna, Sandstorm is entitled to purchase 17% of the life of mine gold produced from the Aurizona Project at a per ounce price equal to the lesser of US$400 and the then prevailing market price.
Sandstorm is also pleased to announce that the Santa Fe Gold Corporation ("Santa Fe") has successfully satisfied all material funding conditions as outlined in the gold purchase agreement between Sandstorm and Santa Fe, including receiving the permit required to begin construction of the tailings facility. As a result, Sandstorm has remitted the US$4 million upfront payment to Santa Fe. Santa Fe's underground Summit mine (the "Summit Mine") is now in progress on construction of its tailings facility with the expectation of beginning gold production in the first half of 2010. In accordance with Sandstorm's gold purchase agreement with Santa Fe, Sandstorm is entitled to purchase 50% of the first 10,000 ounces of gold produced and 22% of the gold produced thereafter, from the Summit Mine at a per ounce price equal to the lesser of US$400 and the then prevailing market price.
"We are very pleased to see this progress at the mine development level," said Nolan Watson, President and Chief Executive Officer. "In the first six months of the launch of Sandstorm, we have been able to complete three metal stream deals, all of which are expected to be cash flowing in the upcoming year. We believe Sandstorm is well on its way to becoming a diversified, low risk metal streaming company and we expect the upcoming year to be transformational for the Company."
ABOUT SANDSTORM RESOURCES
Sandstorm Gold Ltd. is a growth focused resource based company that seeks to complete gold purchase agreements with companies that have advanced stage development projects or operating mines. A gold purchase agreement involves Sandstorm making an upfront cash payment to its partners and in exchange, Sandstorm receives the right to purchase a percentage of the gold produced for the life of the mine, at a fixed price per ounce. Sandstorm helps other companies in the resource industry grow their business, while acquiring attractive assets in the process.
Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold purchase agreements with Luna Gold Corp., SilverCrest Mines Inc., Santa Fe Gold Corp., Rambler Metals and Mining plc, Brigus Gold Corp., Metanor Resources Inc. and Donner Metals Ltd.
For more information visit: http://www.sandstormgold.com.
Cautionary Note Regarding Forward-Looking Information
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology. Forward-looking statements include but are not limited to, statements with respect to the transactions contemplated by the proposed Consolidation of the Company's Common Shares and a proposed listing of the Company's securities in the United States. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by the forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Sandstorm will purchase gold and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; problems inherent to the marketability of minerals; industry conditions, including fluctuations in the price of metals, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm's annual report for the financial year ended December 31, 2011. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Silver Wheaton Corp., Royal Gold, Inc., and Franco-Nevada Corporation.
Sandstorm Gold Ltd.
Nolan Watson, President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.