Date closed: 10/27/2015

Value: US$152 million

On October 27, 2015, Sandstorm Gold Ltd. (Sandstorm) entered into three metal purchase agreements with Yamana Gold Inc. (Yamana), for which Sandstorm paid Yamana total advance payments of US$148 million and has issued Yamana 15 million common share purchase warrants with a strike price of $3.50 and a term of five years. The Sandstorm warrants are exercisable upon achievement of specific milestones with respect to the construction of Yamana's Cerro Moro mine.  Sandstorm will also pay Yamana an additional advance payment of US$4 million in six months. The metal purchase agreements include a silver purchase transaction related to silver production from Yamana's Cerro Moro, Minera Florida and Chapada mines, a copper purchase transaction related to copper production from Yamana's Chapada mine, and a gold purchase transaction related to gold production from Yamana's Agua Rica project.  Sandstorm will also make ongoing payments for each ounce of gold and silver received, and each pound of copper received, equal to 30% of spot prices for each metal.

Sandstorm, headquartered in Vancouver, British Columbia, is a gold streaming and royalty company.

Yamana, headquartered in Toronto, Ontario, is a gold producer.

BLG represented Sandstorm with a team led by Erik Goldsilver (mining, corporate) and including Andrew Powers, Linda Tu, Michael Waters (mining, corporate) and Shane Pearlman (financial services).