VANCOUVER, BC, Sept. 5,
2024 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm
Gold Royalties", "Sandstorm" or the "Company") (NYSE: SAND) (TSX:
SSL) is pleased to provide updates from key development projects
within its diversified portfolio of streaming and royalty
assets.
Greenstone Gold Mine Official Opening and Ramp-up
On August 29, Equinox Gold Corp.
("Equinox Gold") officially opened its 100% owned Greenstone mine
in Geraldton, Ontario, marking a
significant milestone for the company. The event featured remarks
from Indigenous partners, government officials, and Equinox Gold's
leadership. Greg Smith, the
company's President & CEO, highlighted the importance of the
Greenstone mine as a cornerstone asset, being one of Canada's largest and lowest-cost gold
producers.
The Greenstone mine, which began construction in October 2021, poured first gold in May 2024 and is currently ramping up to
commercial production. The mine produced approximately 2,625 ounces
of gold in May, 13,625 ounces in June, and 19,750 ounces in July,
with throughput exceeding 60% of its design capacity during the
month of August.
For more information, visit Equinox Gold's website
at www.equinoxgold.com and refer to the press release
dated August 29, 2024.
Sandstorm holds a gold stream on the Greenstone mine whereby the
Company is entitled to purchase 2.375% of gold produced at the mine
until 120,333 ounces are delivered, and then 1.583% of gold
produced thereafter. Sandstorm will make ongoing payments equal to
20% of the spot price of gold per ounce plus an additional payment
of up to US$30 per ounce in ESG
contributions.
Platreef Phase 1 Concentrator Complete; Advancing Toward 2025
Production
Ivanhoe Mines Ltd. ("Ivanhoe") provided an update on
construction activities at its Platreef PGM mine in South Africa, including the on-schedule
completion of the Phase 1 concentrator, which entered cold
commissioning in July. In-line with Platreef's optimized
development plan schedule, the concentrator will be placed on care
and maintenance until the second half of 2025 as Shaft #1
prioritizes waste hoisting to support and accelerate the
development of Phase 2. An updated Feasibility Study for Phase 2
and a Preliminary Economic Assessment for the Phase 3 expansion are
underway and expected to be complete in the fourth quarter of
2024.
Construction of Shaft #2—critical for the Phase 3 expansion—is
advancing well and headgear is approximately 60% complete. Sinking
of Shaft #2, which will be the largest on the African continent
once complete, is expected to commence in the first quarter of
2025. The Phase 3 expansion aims to increase Platreef's processing
capacity to 10 million tonnes per annum ("Mtpa"), making it one of
the largest and lowest-cost platinum-group metal, nickel, copper,
and gold producers globally.
For more information, visit the Ivanhoe Mines website
at www.ivanhoemines.com and see the press release dated
July 31, 2024.
Sandstorm holds a gold stream on the Platreef project whereby
Sandstorm is entitled to purchase 37.5% of payable gold produced
from Platreef until 131,250 gold ounces have been delivered, then
30% of payable gold produced until an aggregate of 256,980 ounces
are delivered, then 1.875% thereafter if certain conditions are
met. Sandstorm will make ongoing cash payments of US$100 per ounce of gold until 256,980 ounces
have been delivered, and then 80% of the spot price of gold for
each ounce delivered thereafter.
Develop Global Secures Funding for Woodlawn Restart;
Production on Track for 2025
Develop Global Limited ("Develop Global") has secured a
US$65 million prepayment/loan
facility and offtake agreement with global commodities trader
Trafigura Pte Ltd. for its Woodlawn copper-zinc mine in New South Wales, Australia. The facility,
combined with Develop Global's existing cash reserves and cash from
its mining services division, ensures that Woodlawn is fully funded through to
production. The deal increases the project's net present value by
11% to A$728 million and forecasts a
pre-tax free cash flow of A$1.1
billion over a 10-year mine plan. Develop Global is on track
to make a final investment decision for the Woodlawn project in the third quarter of 2024,
putting Woodlawn on track for
first production and cash flows in mid-2025.
For more information, visit Develop Global's website
at www.develop.com.au and see the press release dated
August 2, 2024.
Sandstorm has a silver stream on the Woodlawn project whereby the Company has the
right to receive an amount of silver equal to 80% of payable silver
produced, to a maximum value of A$27
million. In addition, the Company holds a second stream on
Woodlawn under which the operator
has agreed to pay Sandstorm A$1.0
million for each 1 million tonnes of tailings ore processed
at Woodlawn, subject to a
cumulative cap of A$10 million.
Construction Progress at Bayan Khundii Targets First
Production in 2025
Erdene Resource Development Corp. ("Erdene") reported continued
progress at the Bayan Khundii gold project located in Mongolia. The company continues to make
significant strides in the project's development, with construction
having reached approximately 30% completion at the end of
June 2024. The process plant, a
critical path facility for the project, was nearly 40% constructed,
with all major mechanical equipment now on-site. Construction has
also begun on key non-process infrastructure, including the
overhead transmission line. As of August
2024, approximately US$60
million has been invested in the project with almost 500
personnel on-site. The project remains largely on schedule with
first gold production anticipated in mid-2025.
Exploration efforts within the Khundii Minerals District have
also yielded promising results, identifying several new gold
targets across the Khundii and Zuun Mod licenses. Drilling is
currently underway at Bayan Khundii to test targets west of the
economic pit, with the goal of expanding the Resource base and
increasing confidence in the high-grade ore scheduled for mining in
the first year of production. The results of these exploratory
activities are expected to be released in 2024.
For more information, visit Erdene's website
and www.erdene.com and see the press release dated
August 8, 2024. Sandstorm has a 1.0%
net smelter returns ("NSR") royalty on the Bayan Khundii
project.
Allied Gold Secures Funding for Advancements at Côte d'Ivoire
Assets
Allied Gold Corporation ("Allied Gold") announced the
closing of US$53 million in stream
financing for advancement initiatives at its Côte d'Ivoire Complex
(CDI Complex), which includes the Bonikro and Agbaou gold mines.
The stream financing will support the advancement of highly
prospective sites with Allied Gold allocating a total of
US$16.5 million in 2024 to advance
high priority targets such as Oume, Akissi-So, Agbalé, and
others, which are located within Sandstorm's Bonikro stream
claim. Allied Gold expects to accelerate projects that aim to
optimize operations, extend mine life, and increase asset value by
unlocking additional upside potential.
For more information, visit Allied Gold's website at
www.alliedgold.com and see the press releases dated August 7 and August 14,
2024.
In conjunction with Allied Gold's financing, Sandstorm amended
its Bonikro gold stream such that the Company is entitled to
minimum annual deliveries of 4,000–6,000 ounces in the 2024–2026
period and 2,000–3,000 ounces in the 2027–2029 period (the "Annual
Delivery Amount"). No other changes were made to the delivery or
payment terms under the stream. Sandstorm's gold stream on the
Bonikro mine allows the Company to purchase 6% of gold produced at
the mine until 39,000 ounces of gold are delivered, then 3.5% of
gold produced until 61,750 cumulative ounces of gold have been
delivered, then 2% thereafter, subject to the Annual Delivery
Amount. Sandstorm will make ongoing payments of $400 per gold ounce delivered.
ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a precious metals-focused royalty company that
provides upfront financing to mining companies and receives the
right to a percentage of production from a mine, for the life of
the mine. Sandstorm holds a portfolio of over 230 royalties, of
which 41 of the underlying mines are producing. Sandstorm plans to
grow and diversify its low-cost production profile through the
acquisition of additional gold royalties. For more information
visit: www.sandstormgold.com.
CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS
The financial information included or incorporated by reference
in this press release or the documents referenced herein has been
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
Board, which differs from US generally accepted accounting
principles ("US GAAP") in certain material respects, and thus are
not directly comparable to financial statements prepared in
accordance with US GAAP.
This press release and the documents incorporated by reference
herein, as applicable, have been prepared in accordance with
Canadian standards for the reporting of mineral resource and
mineral reserve estimates, which differ from the previous and
current standards of the United
States securities laws. In particular, and without limiting
the generality of the foregoing, the terms "mineral reserve",
"proven mineral reserve", "probable mineral reserve", "inferred
mineral resources,", "indicated mineral resources," "measured
mineral resources" and "mineral resources" used or referenced
herein and the documents incorporated by reference herein, as
applicable, are Canadian mineral disclosure terms as defined in
accordance with Canadian National Instrument 43-101 — Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards").
For United States reporting
purposes, the United States Securities and Exchange Commission (the
"SEC") has adopted amendments to its disclosure rules (the "SEC
Modernization Rules") to modernize the mining property disclosure
requirements for issuers whose securities are registered with the
SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules
more closely align the SEC's disclosure requirements and policies
for mining properties with current industry and global regulatory
practices and standards, including NI 43-101, and replace the
historical property disclosure requirements for mining registrants
that were included in SEC Industry Guide 7. Issuers were required
to comply with the SEC Modernization Rules in their first fiscal
year beginning on or after January 1,
2021. As a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Corporation is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. Accordingly, mineral reserve and
mineral resource information contained or incorporated by reference
herein may not be comparable to similar information disclosed by
United States companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources." In
addition, the SEC has amended its definitions of "proven mineral
reserves" and "probable mineral reserves" to be "substantially
similar" to the corresponding CIM Definition Standards that are
required under NI 43-101. While the SEC will now recognize
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", U.S. investors should not assume that
all or any part of the mineralization in these categories will be
converted into a higher category of mineral resources or into
mineral reserves without further work and analysis. Mineralization
described using these terms has a greater amount of uncertainty as
to its existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, U.S. investors are
cautioned not to assume that all or any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable
without further work and analysis. Further, "inferred mineral
resources" have a greater amount of uncertainty and as to whether
they can be mined legally or economically. Therefore, U.S.
investors are also cautioned not to assume that all or any part of
inferred mineral resources will be upgraded to a higher category
without further work and analysis. Under Canadian securities laws,
estimates of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. While
the above terms are "substantially similar" to CIM Definitions,
there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
there is no assurance any mineral reserves or mineral resources
that the Company may report as "proven mineral reserves", "probable
mineral reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules or under the prior standards of SEC Industry Guide 7.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements", within
the meaning of the U.S. Securities Act of 1933, the U.S. Securities
Exchange Act of 1934, the Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Sandstorm Gold Royalties. Forward-looking statements include the
future price of gold, silver, copper, iron ore and other metals,
the estimation of mineral reserves and resources, realization of
mineral reserve estimates, and the timing and amount of estimated
future production. 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 are made based upon certain
assumptions and other important factors that, if untrue, could
cause the actual results, performances or achievements of Sandstorm
Gold Royalties to be materially different from future results,
performances or achievements expressed or implied by such
statements. Such statements and information are based on numerous
assumptions regarding present and future business strategies and
the environment in which Sandstorm Gold Royalties will operate in
the future, including the receipt of all required approvals, the
price of gold and copper and anticipated costs. Certain important
factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, amongst others, failure to receive necessary
approvals, changes in business plans and strategies, market
conditions, share price, best use of available cash, gold and other
commodity price volatility, discrepancies between actual and
estimated production, mineral reserves and resources and
metallurgical recoveries, mining operational and development risks
relating to the parties which produce the gold or other commodity
the Company will purchase, regulatory restrictions, activities by
governmental authorities (including changes in taxation), currency
fluctuations, the global economic climate, dilution, share price
volatility and competition.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to: the impact of general business and economic conditions,
the absence of control over mining operations from which the
Company will purchase gold, other commodities or receive royalties
from, 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, risks in the
marketability of minerals, fluctuations in the price of gold and
other commodities, fluctuation in foreign exchange rates and
interest rates, stock market volatility, as well as those factors
discussed in the section entitled "Risks to Sandstorm" in the
Company's annual report for the financial year ended December 31, 2023 and the section entitled "Risk
Factors" contained in the Company's annual information form dated
March 27, 2024 available at
www.sedarplus.com. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company does not
undertake to update any forward-looking statements that are
contained or incorporated by reference, except in accordance with
applicable securities laws.
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SOURCE Sandstorm Gold Ltd.
