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Canadian Miner Sandstorm Gold Closes Acquisition of Mariana Resources.

MANews-(C)2009-2017

6 July 2017 - Shareholders of Canadian mine investor Sandstorm Gold Ltd. (NYSE MKT: SAND) (TSX: SSL) has closed the acquisition of Australia-based Mariana Resources Ltd. (TSX.V: MARL) (AIM: MARL), the company said.

This deal was announced in April.

Mariana Resources is a mineral exploration and development company. The company holds a portfolio of gold, silver and copper projects in Argentina and Chile.

The company has a market cap on the LSE of around GBP 117.27m (USD 149.83m).

Under the deal, the entire issued ordinary share capital of Mariana (that Sandstorm does not already own) will be acquired by Sandstorm by means of a court-sanctioned scheme of arrangement.

The combined group will have a portfolio of 155 streams and royalties including 20 producing, 23 development-stage, 26 advanced exploration-stage and 86 exploration-stage assets.

Of the projects that make up the Stream and Royalty Portfolio, 63% are located in North America, 19% in South America, 12% in Asia, 3% in Africa and 3% in Australia.

It will hold a 30% incorporated joint venture interest in the high-grade, gold-copper, development-stage Hot Maden project in northeast Turkey.

Sandstorm intends to move from the current position of equity participation in the JV to converting the Combined Group's interest into a gold stream, providing the potential to more than double attributable gold equivalent production once in full operation.

Following the combination, the combined group will have significant available liquidity from its CDN 110m revolving credit facility and strong cash flow from operations to fund Sandstorm's ongoing strategy of future stream and royalty acquisitions.

Sandstorm Gold provides financing for precious metal mining companies in the form of a 'gold streaming' transaction whereby an upfront cash payment is exchanged for a percentage of gold production from the mine.

Country: Australia

Sector: Metals/Mining

Target: Mariana Resources Ltd

Buyer: Sandstorm Gold Ltd

Vendor:

Deal size in USD: 150m

Type: Corporate Acquisition

Financing:

Status: Closed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Geographic Code:8AUST
Date:Jul 6, 2017
Words:323
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