VANCOUVER,
Dec. 6, 2013 /CNW/ - Sandstorm Metals
& Energy Ltd. ("Sandstorm") (TSX-V: SND) announces a status
update related to Colossus Minerals Inc. ("Colossus" or "the
Company") and their efforts to secure funding for the balance of
the expenses required to commence production at the Serra Pelada
Mine in Brazil ("Serra
Pelada").
In a press release dated November 14, 2013, Colossus announced that
development delays at Serra Pelada had resulted in a change to the
anticipated production start date at the mine and that additional
capital would be needed. The management team at Colossus has
estimated that US$70 million is
required in order to meet the Company's existing obligations and
progress Serra Pelada to production.
At this time, the board of directors of Colossus
has decided to cease underground development at Serra Pelada in
order to reduce ongoing costs. The Company intends to continue with
the dewatering program at the mine and commence underground
definition drilling in connection with the preparation of a
National Instrument 43-101 compliant resource estimate for Serra
Pelada. Roscoe Postle Associates Inc. has been hired to complete
the resource estimate which is expected by the end of December,
2013.
Given that Colossus has material negative
working capital, the Company will need additional funding in order
to proceed with the strategy outlined by its board of directors.
Sandstorm will be reviewing its investment in the Company for a
partial or full impairment as there can be no assurance that
adequate funding will be available for Colossus in the future.
ABOUT SANDSTORM metals & energy
Sandstorm Metals & Energy Ltd. is a
diversified streaming company. Sandstorm provides upfront financing
to resource companies that are looking for capital and in return,
receives a commodity streaming agreement. This agreement gives
Sandstorm the right to purchase a percentage of the commodity
produced at a mine, for the life of the mine, at a fixed price.
Sandstorm has acquired a portfolio of three commodity streams and
two net smelter return royalties in copper, lead, natural gas,
palladium and zinc. Sandstorm plans to grow and diversify its
production base through the acquisition of additional commodity
streams.
Sandstorm Metals & Energy is focused on low
cost operations with excellent exploration potential and strong
management teams. Sandstorm has completed commodity stream and
royalty agreements with Canadian Zinc Corp., Colossus Minerals
Inc., Entrée Gold Inc., Glencore Xstrata plc and Gordon Creek
Energy Inc.
For more information visit:
www.sandstormmetalsandenergy.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Except for the statements of historical fact
contained herein, the information presented constitutes
"forward-looking information" or "forward-looking statements"
within the meaning of applicable Canadian securities legislation.
Forward-looking statements can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans",
or similar terminology. Forward-looking information is based on
reasonable assumptions that have been made by Sandstorm as at the
date of such information and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Sandstorm to be
materially different from those expressed or implied by the
forward-looking information, including but not limited to: the
impact of general business and economic conditions; the absence of
control over operations from which Sandstorm will purchase
commodities and risks related to those operations, including risks
related to international operations, government and environmental
regulation, actual results of current exploration activities,
conclusions of economic evaluations and changes in project
parameters as plans continue to be refined; problems inherent to
the marketability of commodities; industry conditions, including
fluctuations in the price of commodities, fluctuations in foreign
exchange rates and fluctuations in interest rates; stock market
volatility; competition; as well as those factors discussed in the
section entitled "Risks to Sandstorm" in Sandstorm's annual report
for the financial year ended December 31,
2012. Although Sandstorm has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. Sandstorm does not undertake to update
any forward-looking information that is contained or incorporated
by reference herein, except in accordance with applicable
securities laws. Sandstorm does not provide any representation as
to its comparability with other companies in its industry
including, but not limited to, Franco-Nevada Corporation, BHP
Billiton and Rio Tinto.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Sandstorm Metals & Energy Ltd.