VANCOUVER, BRITISH COLUMBIA, Oct. 19, 2009 (Marketwire) --
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/19/09 -- Sandstorm Resources Ltd. ("Sandstorm" or the "Corporation") (TSX VENTURE: SSL) is pleased to announce that Luna Gold Corp. ("Luna") has successfully satisfied all material funding conditions as outlined in the gold purchase agreement between Sandstorm and Luna. As a result, Sandstorm has released from escrow, the US$17.8 million upfront payment and the 5,500,000 shares of the Corporation, to Luna. Luna's open pit Aurizona project (the "Aurizona Project") is now in progress on civil construction and mechanical-electrical assembly of the gold plant with the expectation of commissioning the mine in the second quarter of 2010. In accordance with Sandstorm's gold purchase agreement with Luna, Sandstorm is entitled to purchase 17% of the life of mine gold produced from the Aurizona Project at a per ounce price equal to the lesser of US$400 and the then prevailing market price.
Sandstorm is also pleased to announce that the Santa Fe Gold Corporation ("Santa Fe") has successfully satisfied all material funding conditions as outlined in the gold purchase agreement between Sandstorm and Santa Fe, including receiving the permit required to begin construction of the tailings facility. As a result, Sandstorm has remitted the US$4 million upfront payment to Santa Fe. Santa Fe's underground Summit mine (the "Summit Mine") is now in progress on construction of its tailings facility with the expectation of beginning gold production in the first half of 2010. In accordance with Sandstorm's gold purchase agreement with Santa Fe, Sandstorm is entitled to purchase 50% of the first 10,000 ounces of gold produced and 22% of the gold produced thereafter, from the Summit Mine at a per ounce price equal to the lesser of US$400 and the then prevailing market price.
"We are very pleased to see this progress at the mine development level," said Nolan Watson, President and Chief Executive Officer. "In the first six months of the launch of Sandstorm, we have been able to complete three metal stream deals, all of which are expected to be cash flowing in the upcoming year. We believe Sandstorm is well on its way to becoming a diversified, low risk metal streaming company and we expect the upcoming year to be transformational for the Company".
ABOUT SANDSTORM RESOURCES
Sandstorm Resources Ltd. is a growth focused resource based company that seeks to complete transactions with companies that have advanced stage development projects or operating mines. By making upfront payments to its partners, Sandstorm receives volumetric production payments (i.e. metal stream deals) on precious metals.
