Date closed: 4/4/2019
Value: US$42.5 million
On April 4, 2019, Sandstorm Gold Ltd. (Sandstorm) entered into a US$42.5 million financing package with Americas Silver Corporation (Americas Silver) that includes a US$25 million gold stream and royalty on the Relief Canyon Project in Nevada, USA, as well as a US$10 million convertible debenture, and an US$7.5 million equity subscription.
In exchange for US$25 million, Sandstorm will receive 32,022 ounces of gold over 5.5 years followed by 4.0% of the gold and silver production from the Relief Canyon Mine. Sandstorm will also have a 1.4% - 2.8% net smelter returns royalty on the area surrounding the Relief Canyon mine, plus a four kilometre area of interest.
The US$10 million convertible debenture bears an interest rate of 6% per annum and has a term of four years (the Debenture). Sandstorm has the right to convert principal and interest owing under the Debenture into common shares of Americas Silver, at any time prior to the maturity date, at a conversion price US$2.14 per Americas Silver share.
Sandstorm has agreed to subscribe for 4,784,689 shares of Americas Silver at C$2.09 per share.
BLG represented Sandstorm with a team led by Erik Goldsilver and Michael Waters that included Donald Bird, Edward Wang and Lauren DeGoey.