#Canada #Vancouver #Sandstorm Gold #Credit Facility #Share Purchase

Sandstorm Gold Royalties Updates: ASPP and Credit Facility

Sandstorm Gold Ltd., also known as Sandstorm Gold Royalties, has announced vital updates regarding its recent corporate strategies. The company has initiated an Automatic Share Purchase Plan (ASPP) meant to facilitate the acquisition of its common shares. This step is taken in alignment with its previously announced Normal Course Issuer Bid (NCIB).

Automatic Share Purchase Plan

The newly established ASPP will enable Sandstorm to buy back its shares even during periods when it would typically be barred from purchasing due to restrictions or customary blackout periods. This strategic move is rooted in Sandstorm’s belief that the market price for its common shares may sometimes lag behind their intrinsic value. The share repurchase through this program means Sandstorm views this as a productive allocation of its capital, surpassing other possible investment avenues.

Under the NCIB, which began on May 7, 2024, the company is permitted to repurchase up to 20 million common shares. The ASPP alone allows for the buyback of up to 10 million shares, with adherence to TSX regulations. The new plan commenced on December 9, 2024, following clearance from the TSX, and will remain active until the NCIB concludes or is otherwise terminated.

To date, Sandstorm has executed purchases under the NCIB totaling 1,578,800 common shares at a volume-weighted average price of approximately CAD 7.58 on TSX.

Expiration of ATM Equity Program

Additionally, Sandstorm announced the expiration of its at-the-market (ATM) equity program as of October 22, 2024. This program had been renewed previously in June 2023 and authorized the issuance of up to US$150 million of common shares at the company's discretion. Notably, the program wrapped up without any shares being issued, and there are no current plans for re-establishment.

Renewal of Revolving Credit Facility

In a separate yet significant move, Sandstorm has renewed its revolving credit facility, enabling the company to borrow as much as US$625 million. The interest applicable to drawn amounts will now range from SOFR plus 1.75%–2.75%, down by 75 basis points at the upper limit from the previous agreement. This updated facility ensures better financial terms while aligning with the company’s operational goals.

The undrawn balance will incur a standby fee between 0.39% to 0.62% per annum, contingent on the company’s leverage ratio. Moreover, the facility encapsulates sustainability-linked incentive pricing, allowing Sandstorm to further reduce interests based on attaining specific performance targets. Major banks including The Bank of Nova Scotia and Royal Bank of Canada are part of the syndicate backing this facility.

Scheduled for maturity in December 2028, this credit agreement is poised to support Sandstorm’s ongoing operations and growth ambitions...

Conclusion

Through these strategic initiatives—both the ASPP and the renewed credit facility—Sanstorm Gold Royalties aims to bolster its financial position while enabling flexibility in its capital structure. Such measures are essential as Sandstorm continues its mission to expand its royalty portfolio and maintain a leadership position in the precious metals sector.