Equinox Gold and Sandstorm Gold announce new metals royalty company

Equinox Gold Corp and Sandstorm Gold have today announced the creation of Sandbox Royalties Corp – a new diversified metals royalty company.

They NYSE and TSX-listed companies have each entered into definitive purchase and sale agreements with Rosedale Resources, which will see the latter acquire a portfolio of royalties from Equinox and Sandstorm.

Through the deal, Equinox will receive US$28.4 million in common shares of Rosedale, while Sandstorm will get $65 million – comprising $32.1 million in common shares of Rosedale and $32.9 million in a promissory note convertible into common shares of Rosedale.

On closure, Rosedale will change its corporate name to Sandbox and commence a new life as a well-funded and diversified metals royalty company with exposure to gold, silver, copper, zinc, graphite and uranium across several top mining jurisdictions in the Americas and Europe.

The new company will be led by Greg Smith as president and CEO. Smith has been president of Equinox since March 2017.

Sandstorm and Equinox Gold will hold a 34% and 30% basic interest, respectively, in Sandbox, providing the opportunity to participate in and facilitate future growth of the company.

“Equinox Gold has surfaced tremendous value as a significant and supportive shareholder of Solaris Resources and i-80 Gold, our previous spin-out companies, and intends to continue that track record with Sandbox Royalties,” said Equinox CEO Christian Milau.