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Message: Sandstorm Metals & Energy Announces US$20 Million Payment to Donner Metals
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July 25, 2011 Sandstorm Metals & Energy Announces US$20 Million Payment to Donner Metals |
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Vancouver, British Columbia, July 25, 2011 -- Sandstorm Metals & Energy Ltd. ("Sandstorm Metals") (TSX-V: SND) has completed a US$20 million payment to Donner Metals Ltd. ("Donner") (TSX-V: DON) in accordance with the copper purchase agreement announced on July 13, 2011. Under the terms of the agreement, Sandstorm Metals is entitled to purchase an amount equal to 17.5% of the life of mine copper produced from the Bracemac-McLeod Property which is operated by Xstrata Canada Corporation. Sandstorm Metals will purchase the copper at a per pound price equal to the lesser of US$0.80 and the then prevailing market price of copper unless the price of copper falls below US$2.75 per pound, in which case the per pound price will be equal to the lesser of US$0.55 and the then prevailing market price of copper. Sandstorm Metal's payment to Donner was made with cash on hand, US$17.75 million as an upfront payment and the remaining US$2.25 million coming from the purchase of 6,428,571 common shares of Donner at US$0.35 per share. Donner will be using the proceeds for the development of the Bracemac-McLeod Property located in Matagami, Québec. For more information on Donner Metals or the Bracemac-McLeod Property, please visit www.donnermetals.com. |
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