Sandstorm Metals & Energy Announces Amendment to the Natural Gas Purchase Agreement With Thunderbird Energy
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 14, 2012) - Sandstorm Metals & Energy Ltd. ("Sandstorm") (TSX VENTURE:SND) is pleased to announce an amendment to the natural gas purchase agreement with Thunderbird Energy Corp. ("Thunderbird") (TSX VENTURE:TBD).
Under the terms of the agreement announced on July 13, 2011, Sandstorm is entitled to purchase 35% of all natural gas produced from Thunderbird's Gordon Creek project for US$1.00 per mcf. As part of the agreement, Thunderbird provided a commitment to drill a minimum of 50 new wells prior to December 31, 2012. In addition, Thunderbird guaranteed that Sandstorm will receive certain minimum cash flows over the next several years.
Sandstorm and Thunderbird have agreed to amend the natural gas purchase agreement whereby all minimum cash flow guarantees and drilling commitments at Gordon Creek will be deferred by one year. As consideration for this deferral, in March 2013, Thunderbird will issue to Sandstorm $2.55 million of Thunderbird shares at a deemed price equivalent to the 50 day volume weighted average trading price prior to issuance. In addition, the US$10 million that Sandstorm was to remit to Thunderbird in May 2012 will now be remitted in May 2013.
"This amendment provides material benefit to Sandstorm shareholders in the form of Thunderbird shares while maintaining the full drilling commitments and cash flow guarantees, on a 1 year deferred basis," said Sandstorm President and CEO, Nolan Watson. |
