Sandstorm Metals & Energy Makes $20 Million Payment to Donner Metals
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Sandstorm Metals & Energy Ltd. has completed a $20 million payment to Donner Metals Ltd. in accordance with the copper purchase agreement announced on July 13. Under the terms of the agreement, Sandstorm Metals is entitled to purchase an amount equal to 17.5 percent of the life of mine copper produced from the Bracemac-McLeod Property, which is operated by Xstrata Canada Corporation. Sandstorm Metals will purchase the copper at a per pound price equal to the lesser of $0.80 and the then prevailing market price of copper unless the price of copper falls below $2.75 per pound, in which case the per pound price will be equal to the lesser of $0.55 and the then prevailing market price of copper.
Sandstorm Metal’s payment to Donner was made with cash on hand, $17.75 million as an upfront payment and the remaining $2.25 million coming from the purchase of 6,428,571 common shares of Donner at $0.35 per share.
Donner will be using the proceeds for the development of the Bracemac-McLeod Property located in Matagami, Quebec.
About Sandstorm Metals & Energy
Sandstorm Metals & Energy Ltd. is a growth focused resource based company that seeks to complete commodity purchase agreements with companies that have advanced stage development projects or operating projects. A commodity purchase agreement involves Sandstorm Metals & Energy making an upfront cash payment to its partners and in exchange, Sandstorm Metals & Energy receives the right to purchase a percentage of the commodity produced for the life of the asset, at a fixed price per unit. Sandstorm Metals & Energy helps other companies in the resource industry grow their business, while acquiring attractive assets in the process.
Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm Metals & Energy has completed commodity purchase agreements with NovaDX Ventures Corp., Royal Coal Corp., Terrex Energy Inc., Donner Metals Ltd. and Thunderbird Energy Corp.
To stop by Sandstorm Metals & Energy’s website, CLICK HERE
