Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) has announced that it has entered into definitive agreements with respect to two transformative transactions, totaling US$1.1 billion in value:
- Nomad Royalty Company Acquisition: Sandstorm and Nomad Royalty Company Ltd. (NYSE: NSR, TSX: NSR) (“Nomad”) have entered into a definitive agreement whereby Sandstorm will acquire all of the outstanding shares of Nomad, which implies an equity value of approximately US$590 million (the “Nomad Acquisition”)
- BaseCore Metals Royalty Package: Sandstorm has agreed to acquire nine royalties and one stream (the “BaseCore Portfolio”) from BaseCore Metals LP (“BaseCore”), a 50/50 joint venture between Glencore Canada Corporation and Ontario Teachers’ Pension Plan Board, for total consideration of US$525 million, payable as to US$425 million in cash and US$100 million in common shares of the Company (the “BaseCore Transaction”, and together with the Nomad Acquisition, the “Transactions”). Concurrent with the BaseCore Transaction, Sandstorm has partnered with Royalty North Partners Ltd. (“Horizon Copper”) to sell a portion of a copper royalty acquired in the BaseCore Transaction and retain a silver stream on the asset.
The Transactions substantially increase Sandstorm’s scale and size, cementing Sandstorm’s status as the largest, highest-growth and most liquid mid-tier royalty and streaming company. The acquired assets include a portfolio of 20 royalty and stream assets in connection with the Nomad Acquisition and 10 royalty and stream assets in connection with the BaseCore Transaction, including a 1.66% net profits interest on Antamina, the world’s third largest copper mine.
Fort Capital and BMO Capital Markets acted as financial advisors to Sandstorm with respect to the BaseCore Transaction.