Sandstorm Gold Adds $1.1 Billion to Portfolio Through Acquisitions
Sandstorm Gold Ltd. (NYSE: SAND) (“Sandstorm”), a global gold royalties company focused on acquiring royalties, gold and other metals, announced that it has added $1.1 billion to its portfolio through the acquisitions of Nomad Royalty Company Ltd. (NYSE: NSR) (TSX: NSR) (“Nomad”) and a BaseCore Metals Royalty Package consisting of nine royalties and one stream from BaseCore Metals LP (“BaseCore”).
The definitive agreement between Sandstorm and Nomad, expected to have an equity value of C$755 million, is expected to close by the second quarter of 2022. Nomad possesses a royalty of 20 royalty and stream assets that brought the company $27 million in revenue in 2021. The terms of this acquisition will allot Nomad shareholders 1.2 Sandstorm Shares for each Nomad Share held.
The acquisition of the BaseCore Metals Royalty Package, worth $525 million upon consideration, will allow Sandstorm to sell a portion of a copper royalty acquired in the transaction and retain a silver stream on the asset. The acquisition will be payable to $425 in cash and $100 million in Sandstorm Shares and is expected to close in 4-6 weeks.
BaseCore Metals is an equally owned entity by affiliates of Glencore Plc (“Glencore”) and Ontario Teachers’ Pension Plan that hold a portfolio of 10 royalty and stream assets.
The Transaction will involve an issuance of 78.6 million in Sandstorm Shares to Nomad shareholders and 13.5 million in Sandstorm Shares to BaseCore. It is also expected to produce meaningful cash-flowing and development stage assets to Sandstorm’s royalty portfolio.
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