VANCOUVER – Streaming and royalty outfit Sandstorm Gold (TSX: SSL; NYSE-MKT: SAND) has been on a bit of a deal making tear to start the year. The company managed to lock down 10 new royalty agreements in West Africa and Nevada, and on Feb. 18 it announced a friendly, all-share deal for junior Gold Royalties (TSX: GRO), which adds a portfolio of 18 royalties on 13 mining projects in Canada.
Under terms of the agreement, Gold Royalties investors will receive 0.045 of a Sandstorm share for each share held. The deal values Gold Royalties at around 20¢ per share, which represents a 70% premium based on the company's 20-day volume weighted average trading price of 11.8¢ per share. The total value of the transaction is roughly $5.7 million vis-à-vis Sandstorm’s Feb. 17 closing price.
Prior to executing the agreement, Sandstorm locked up share votes held by management and certain members of Gold Royalties' board, who collectively hold around 5.53% of the company's outstanding equity. Gold Royalties president and CEO Ryan Kalt labeled the terms "a tremendous premium," despite "a challenged equity market for junior mining."
Read the complete article at NorthernMiner.com/news/sandstorm
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