SilverCrest Sells 20% Of Future Production To Sandstorm For $12 Million, Receives Right To Loan

SilverCrest Mines Inc. has forward-sold 20% of the production of its Santa Elena project, not yet a producer, to Sandstorm Resources Ltd. In exchange for US$12 million upfront, SilverCrest is obliged to sell Sandstorm up to that 20% with a price ceiling of $350/oz. After three years of production, the cap increases by 1% per year. The deal is contingent upon an equity financing going through for Sandstorm, on SilverCrest being cleared to bring the mine into production, and on SilverCrest getting sufficent financing to make Santa Elena a producer. In addition, SilverCrest can borrow US$6 million from Sandstorm at a rate of 7%, with a conversion feature. Half of the loan can be converted to SilverCrest shares at 80 cents per share; the rest can be converted into gold at $1000/oz. The news release goes into more detail on the agreement.

This item was disseminated last evening. Prior to it, SilverCrest closed at 51 cents, up 2 cents on the day, and Sandstorm didn't trade: its last close was on Monday, at 50 cents.

SilverCrest's Google Finance web page is here; Sandstorm's is here.

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NOTE: This blog is confined to aggregating news relating to Canadian gold stocks, as well as to commenting on past and present price movements, and is intended as an informational resource. It is not intended to make recommendations, nor is it a tool for forecasting future price movements. Its author is not a qualified investment advisor, and as such cannot make any investment recommendations. Should you be interested in any stock that appears here, please consider carefully if it is suitable for you and your portfolio. Please also consider seeking advice from a professional investment advisor if you have not already done so.

Sandstorm Enters Into Two Forward-Sale Agreements, Plans $60 Million Secondary Offering

Sandstorm Resources Ltd. has announced that it's entered into two gold-streaming forward-sale agreements, one with Luna Gold (detailed below) and another with SilverCrest. Also, Sandstorm is taking on a new director, Andy Swarthout, who will be replacing Marcel de Groot. In addition, there's a secondary offering planned for gross proceeds up to $60 million: 150 million Subscription Receipts at 40 cents per. Each receipt will entitle the holder to one share and half a purchase warrant. The warrants will have a life of five years and exercise price of 60 cents. The news release has details on all these items.

This update was sent out last evening. Sandstorm last traded Monday, and closed unchanged at 50 cents. Current bid is 45 cents, and current ask is 50 cents.

Sandstorm's Google Finance web page is here.

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NOTE: This blog is confined to aggregating news relating to Canadian gold stocks, as well as to commenting on past and present price movements, and is intended as an informational resource. It is not intended to make recommendations, nor is it a tool for forecasting future price movements. Its author is not a qualified investment advisor, and as such cannot make any investment recommendations. Should you be interested in any stock that appears here, please consider carefully if it is suitable for you and your portfolio. Please also consider seeking advice from a professional investment advisor if you have not already done so.

Luna Gold Sells 17% Of Future Aurizona Production At Huge Discount For $17.8 Million, Receives Loan Also

Luna Gold Corp, has forward-sold 17% of future gold production from its forthcoming Aurizona Project in Brazil, with a price ceiling of $400 per ounce, in exchange for an upfront payment of US$17.8 million from Sandstorm Resources Ltd. This cap applies only to strip-mine gold: underground gold has a cap of $500. The cap increases by 1% per year starting in the fourth year of production. Luna also got a US$7.2 million project loan from Sandstorm, with a four-year term and rate equal to LIBOR + 6%. The news release has further details on the terms, and quotes Luna's CEO saying that Luna can now finance Aurizona to production.

This item was released after market's close. Earlier, Luna closed at 15 cents, leaving it unchanged on the day. Sandstorm didn't trade yesterday; it last closed at 50 cents on Monday.

Luna's Google Finance web page is here; Sandstorm's is here.

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NOTE: This blog is confined to aggregating news relating to Canadian gold stocks, as well as to commenting on past and present price movements, and is intended as an informational resource. It is not intended to make recommendations, nor is it a tool for forecasting future price movements. Its author is not a qualified investment advisor, and as such cannot make any investment recommendations. Should you be interested in any stock that appears here, please consider carefully if it is suitable for you and your portfolio. Please also consider seeking advice from a professional investment advisor if you have not already done so.