On December 18, 2017, Sandstorm Gold Ltd. agreed to purchase an existing 2% net smelter returns royalty (“NSR Royalty”) on the producing Houndé gold mine in Burkina Faso, operated by Endeavour Mining Corporation. The NSR Royalty will be acquired from Acacia Mining plc for US$45 million in cash and covers the Kari North and Kari South tenements, representing approximately 500 square kilometres of the Houndé property package. The NSR Royalty acquisition is expected to close in January 2018.
Houndé gold mine ranks amongst West Africa’s top tier cash generating mines and is expected to produce 235,000 ounces of gold per year on average over the first four years of operations.
Cassels is acting for Sandstorm with a deal team that includes Cathy Mercer and Jennifer Traub (Securities, Mining and M&A).