Sandstorm Gold Announces Bought Deal Financing
Vancouver, British Columbia | June 27, 2016
sandstormgold.com
Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE MKT: SAND, TSX: SSL) has entered into an agreement with a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets (the “Underwriters”) pursuant to which they have agreed to purchase, on a bought deal basis, 11,236,000 common shares of Sandstorm (the “Common Shares”) at a price of US$4.45 per Common Share, for aggregate gross proceeds to Sandstorm of US$50 million (the “Offering”). In addition, Sandstorm has agreed to grant to the Underwriters an option to purchase up to an additional 1,685,400 Common Shares on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering to Sandstorm will be US$57.50 million.
The Company plans to use the net proceeds from the Offering to reduce the balance of its revolving credit facility, for the acquisition of streams and royalties and for general working capital purposes. |
