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
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
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