VANCOUVER, Jan. 14, 2014 /CNW/ - Sandstorm Metals &
Energy Ltd. ("Sandstorm Metals" or "Sandstorm") (TSX-V: SND)
announces that Colossus Minerals Inc. ("Colossus") has approved a
proposal received from Sandstorm Gold Ltd. ("Sandstorm Gold") and a
group of holders of Colossus Convertible Gold Linked Notes (the
"Gold Linked Notes"). The terms of the proposal provide a
restructuring of Colossus' capital structure through the conversion
of its Gold Linked Notes and its metals purchase agreements with
Sandstorm Metals and Sandstorm Gold into equity (the
"Restructuring"). Colossus has filed a notice of intention to make
a proposal under the Bankruptcy and Insolvency Act (Canada), which is intended to enable Colossus
to pursue the Restructuring and a sale process with the benefit of
creditor protection and under Court-supervision.
As part of the Restructuring, Sandstorm has
agreed to cancel its palladium purchase agreement (the "Palladium
Stream") (previously announced on September
19, 2012) in exchange for a 0.4% net smelter returns royalty
("NSR") and common shares of Colossus. If the Restructuring is
completed, Sandstorm expects to own approximately 8% of the
outstanding common shares of Colossus.
Sandstorm Metals entered into the Palladium
Stream via a back-to-back agreement with Sandstorm Gold. Sandstorm
Gold held gold and platinum purchase agreements with Colossus which
have been cancelled in exchange for a 1.6% NSR and approximately
31% of the outstanding common shares of Colossus.
For more details on the Colossus Restructuring,
please visit www.colossusminerals.com.
ABOUT SANDSTORM METALS & ENERGY
Sandstorm Metals & Energy Ltd. is a
diversified streaming company. Sandstorm provides upfront financing
to resource companies that are looking for capital and in return,
receives a commodity streaming agreement. This agreement gives
Sandstorm the right to purchase a percentage of the commodity
produced at a mine, for the life of the mine, at a fixed price.
Sandstorm has acquired a portfolio of two commodity streams and
three net smelter return royalties in copper, lead, natural gas,
palladium and zinc. Sandstorm plans to grow and diversify its
production base through the acquisition of additional commodity
streams.
Sandstorm Metals & Energy is focused on low
cost operations with excellent exploration potential and strong
management teams. Sandstorm has completed commodity stream and
royalty agreements with Canadian Zinc Corp., Colossus Minerals
Inc., Entrée Gold Inc., Glencore Xstrata plc and Gordon Creek
Energy Inc.
For more information visit:
www.sandstormmetalsandenergy.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Except for the statements of historical fact
contained herein, the information presented constitutes
"forward-looking information" or "forward-looking statements"
within the meaning of applicable Canadian securities legislation.
Forward-looking statements can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans",
or similar terminology. Forward-looking information is based on
reasonable assumptions that have been made by Sandstorm as at the
date of such information and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Sandstorm to be
materially different from those expressed or implied by the
forward-looking information, including but not limited to: the
impact of general business and economic conditions; the absence of
control over operations from which Sandstorm will purchase
commodities and risks related to those operations, including risks
related to international operations, government and environmental
regulation, actual results of current exploration activities,
conclusions of economic evaluations and changes in project
parameters as plans continue to be refined; problems inherent to
the marketability of commodities; industry conditions, including
fluctuations in the price of commodities, fluctuations in foreign
exchange rates and fluctuations in interest rates; stock market
volatility; competition; as well as those factors discussed in the
section entitled "Risks to Sandstorm" in Sandstorm's annual report
for the financial year ended December 31,
2012. Although Sandstorm has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. Sandstorm does not undertake to update
any forward-looking information that is contained or incorporated
by reference herein, except in accordance with applicable
securities laws. Sandstorm does not provide any representation as
to its comparability with other companies in its industry
including, but not limited to, Franco-Nevada Corporation, BHP
Billiton and Rio Tinto.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Sandstorm Metals & Energy Ltd.