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.
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