Sandstorm Gold, an innovative gold streaming company with an established portfolio of eight streams (Entree Gold, Luna Gold and Metanor Resources to name but a few) and some 27 gold royalties, was happy to report today on yesterday’s successful completion of the previously announced plan of arrangement whereby Primero Mining (PPP) acquired Canadian mid-tier gold producer, Brigus Gold (BRD), whose 4.36k-acre Black Fox Mine Complex up in Ontario’s Timmins Gold District is streamed to SAND under an agreement for 8% of the gold from total mine life (as well as 6.3% of the Black Fox Extension gold) at $500 an ounce.

Closing this acquisition is great news for SAND shareholders, as the stream is now in the hands of a much better capitalized player, which has the logistical muscle and sheer scale of operations required to significantly de-risk this part of SAND’s portfolio. Closing the Brigus transaction has also transformed Primero substantially, into a bonafide mid-tier gold producer with a diverse pipeline of growth projects. The deal also sparked a move yesterday by major PPP shareholder and industry leader, Goldcorp, as well as Canaccord Genuity, on behalf of a syndicate of underwriters, who have agreed to purchase all shares of PPP (on a bought deal basis) for C$7.20/share.

Needless to say, this is all very good news for SAND and the company now looks forward to drill results from the current exploration program at Black Fox with great anticipation. This kind of success will make it very easy for SAND to continue to grow and diversify their low cost production profile, picking up more juicy streaming and royalty agreements that drive returns directly into their shareholder’s pockets.

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