Sandstorm Became the Owner of 11 Royalties in Turkey

Sandstorm Gold Ltd agreed an agreement with Teck Resources that includes acquisition of a royalty package including some significant projects within Turkey. As a result of $22 million agreement, Sandstorm became the owner of 56 royalties whereas the 7 of them are described as “key assets”.

According to the announcement of Sandstorm which was released on 19th of January, four of the key assets are located in Turkey. Which are:

  • 2.0% net smelter returns (NSR) royalty on the high-grade, advanced exploration-stage Hot Maden project located in Turkey, owned by Mariana Resources Ltd. Lidya Madencilik Sanayi ve Ticaret A.Ş. has an option to earn-in up to 70% in Hot Maden from Mariana;
  • 2.0% NSR royalty on the development-stage Burhaniye project in Turkey owned by Tümad Madencilik Sanayi ve Ticaret A.S. The Burhaniye royalty begins paying after 300,000 ounces have been produced;
  • US$10/ounce production royalty, subject to a maximum ounce cap, on the development-stage Ağı Dağı/Kirazlı projects in Turkey owned by Alamos Gold Inc. and payable by Newmont; and
  • 0.5%-1.5% NSR royalty, based on cumulative production, on the development stage Öksüt project in Turkey owned by Centerra Gold Inc. Centerra holds a right of first offer on the sale of the Öksüt royalty.

Royalty package also includes further projects, located in Turkey. The projects and the share of Sandstorm on the revenue are listed as follows:

  • Altıntepe project – %1,5 NSR
  • Karaağaç project – %1,5 NSR
  • Taç/Çorak project – %1,5 – 2 NSR
  • Red Rabbit project – %2 NSR
  • Hasandağı project – %2 NSR
  • Muratdağı project – %2 NSR
  • Tombul project – %2 NSR

Projects which are located in Canada, USA, Mexico, Chile, Peru, Brazil and Sweden consist the rest of the royalty package.

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