Sandstorm Gold, Equinox Gold to form new metals royalty company (NYSE:SAND)
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Sandstorm Gold (NYSE:SAND) and Equinox Gold (NYSE:EQX) unveiled plans on Thursday to create a new diversified metals royalty company – Sandbox Royalties – after combining certain assets from privately-held Rosedale Resources.
Sandstorm (SAND) and Equinox (EQX) each entered into agreements for Rosedale to acquire a portfolio of royalties from Sandstorm for $65M, consisting of $32.1M in Rosedale shares and $32.9M in a promissory note convertible into Rosedale shares, and from Equinox for $28.4M in Rosedale shares.
Upon closing, Rosedale will change its corporate name to Sandbox Royalties.
Sandstorm (SAND) and Equinox (EQX) will hold respective 34% and 30% basic interests in Sandbox, which will have exposure to a range of resource royalties including gold, silver, copper, zinc, graphite and uranium, as well as immediate cash flow from producing royalties.
Sandstorm Gold (SAND) presents a buying opportunity after a pair of acquisitions lowered the stock price, SomaBull writes in a bullish analysis posted recently on Seeking Alpha.
