Sandstorm Gold Ltd (2)
Symbol C : SSL
Shares Issued 70,518,771
Close 2012-09-07 C$ 9.92
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Sandstorm to spend $10-million (U.S.) on Aurizona
2012-09-10 09:39 ET - News Release
Mr. Nolan Watson reports

SANDSTORM GOLD ANNOUNCES US$10 MILLION CONTRIBUTION TO LUNA GOLD'S AURIZONA EXPANSION

Sandstorm Gold Ltd. has agreed to contribute up to $10-million (U.S.) in capital toward the phase 1 production expansion project at Luna Gold Corp.'s Aurizona mine. Sandstorm's contribution toward the phase 1 expansion will be equal to 17 per cent of the capital costs incurred by Luna toward the phase 1 expansion to a maximum contribution of $10-million (U.S.). In addition, Sandstorm has committed to issue, if requested by Luna, a $20-million (U.S.) non-revolving loan facility with a three-year term, which may only be used to finance the phase 1 expansion and associated exploration costs. In conjunction with Sandstorm's capital contribution, Luna has provided the company with a contractual guarantee that Aurizona will complete its ramp-up to 125,000 ounces of annual gold production by the end of 2013.

"The phase 1 expansion project at Aurizona will increase Sandstorm's cash flow and is an important next step for Luna as they assess phase 2 expansion," said Sandstorm president and chief executive officer Nolan Watson. "Aurizona is Sandstorm's flagship asset and this capital contribution demonstrates our commitment to being a strong partner with Luna for years to come."

In accordance with Sandstorm's gold stream agreement with Luna, Sandstorm is entitled to purchase 17 per cent of the life-of-mine gold produced from Aurizona, at a per ounce price of $400 (U.S.).