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Sandstorm Gold Ltd completes Acquisition of a 0.9% NSR Royalty on Lundin Gold's Fruta Del Notre Mine

Date closed: 1/18/2019

Value: US$32.75 million

On January 18, 2019, Sandstorm Gold Ltd. (Sandstorm) (NYSE: SAND, TSX: SSL) acquired a 0.9% net smelter returns royalty (NSR Royalty) on precious metals produced from the Fruta del Norte gold project in Ecuador (Fruta del Norte), currently under construction by Lundin Gold Corporation (Lundin Gold).

The NSR Royalty was acquired from a private third party for US$32.75 million in cash and covers more than 644 square kilometres, including all 30 mining concessions held by Lundin Gold. The Fruta del Norte Mineral Reserve contains 5.0 million ounces of gold in 17.8 million tonnes of ore with an average grade of 8.7 grams per tonne as of September 2018, ranking it amongst the highest-grade gold projects in the world.

BLG represented Sandstorm with a team led by Erik Goldsilver that included Joseph DiPonio.