Sandstorm Metals & Energy Announces Colossus Restructuring
VANCOUVER, Jan. 14, 2014 /CNW/ - Sandstorm Metals & Energy Ltd. ("Sandstorm Metals" or "Sandstorm") (TSX-V: SND) announces that Colossus Minerals Inc. ("Colossus") has approved a proposal received from Sandstorm Gold Ltd. ("Sandstorm Gold") and a group of holders of Colossus Convertible Gold Linked Notes (the "Gold Linked Notes"). The terms of the proposal provide a restructuring of Colossus' capital structure through the conversion of its Gold Linked Notes and its metals purchase agreements with Sandstorm Metals and Sandstorm Gold into equity (the "Restructuring"). Colossus has filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada), which is intended to enable Colossus to pursue the Restructuring and a sale process with the benefit of creditor protection and under Court-supervision.
As part of the Restructuring, Sandstorm has agreed to cancel its palladium purchase agreement (the "Palladium Stream") (previously announced on September 19, 2012) in exchange for a 0.4% net smelter returns royalty ("NSR") and common shares of Colossus. If the Restructuring is completed, Sandstorm expects to own approximately 8% of the outstanding common shares of Colossus.
Sandstorm Metals entered into the Palladium Stream via a back-to-back agreement with Sandstorm Gold. Sandstorm Gold held gold and platinum purchase agreements with Colossus which have been cancelled in exchange for a 1.6% NSR and approximately 31% of the outstanding common shares of Colossus.
For more details on the Colossus Restructuring, please visit www.colossusminerals.com.
ABOUT SANDSTORM METALS & ENERGY
Sandstorm Metals & Energy Ltd. is a diversified streaming company. Sandstorm provides upfront financing to resource companies that are looking for capital and in return, receives a commodity streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the commodity produced at a mine, for the life of the mine, at a fixed price. Sandstorm has acquired a portfolio of two commodity streams and three net smelter return royalties in copper, lead, natural gas, palladium and zinc. Sandstorm plans to grow and diversify its production base through the acquisition of additional commodity streams.
Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed commodity stream and royalty agreements with Canadian Zinc Corp., Colossus Minerals Inc., Entrée Gold Inc., Glencore Xstrata plc and Gordon Creek Energy Inc.
For more information visit: www.sandstormmetalsandenergy.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by the forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over operations from which Sandstorm will purchase commodities and risks related to those operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; problems inherent to the marketability of commodities; industry conditions, including fluctuations in the price of commodities, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm's annual report for the financial year ended December 31, 2012. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Franco-Nevada Corporation, BHP Billiton and Rio Tinto.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Sandstorm Metals & Energy Ltd.For further information:
Sandstorm Metals & Energy Ltd.
Nolan Watson, Chief Executive Officer
Denver Harris, Investor Relations Contact