Sandstorm Gold Ltd. (TSX:SSL) acquired 43.18% stake in Premier Royalty, Inc. (TSX:NSR) from Premier Gold Mines Limited (TSX:PG) for CAD 70.7 million on January 28, 2013. Pursuant to the agreement, Sandstorm will acquire 33.65 million common shares and 6.96 million warrants of Premier Royalty Inc. from Premier Gold. The warrants are exercisable to acquire one common share of Premier Royalty at a price of CAD 2, 5.5 million of such warrants expire on December 4, 2016 and 1.45 warrants expire on October 7, 2014.

Pursuant to the terms of the agreement, each one common share and 0.207 of a warrant will be transferred to Sandstorm at a price of CAD 2.10 per Premier Royalty Unit. The total consideration for the Premier Royalty Units will be satisfied by the issuance of 5.6 million special warrants in the capital of Sandstorm, which are subject to the approval of the Toronto Stock Exchange, each being exercisable for no additional consideration into one common share of Sandstorm in accordance with the terms thereof. Jennifer Traub, Cathy Mercer, Marlin Horst and Adria Leung of Cassels Brock & Blackwell LLP acted as legal advisor for Sandstorm Gold. Abbas Ali Khan of Fraser Milner Casgrain LLP acted as legal advisor for Premier Gold. Jamie H.C. Au of Bennett Jones LLP acted as the legal advisor for Premier Gold Mines.

Sandstorm Gold Ltd. (TSX:SSL) completed the acquisition of 43.18% stake in Premier Royalty, Inc. (TSX:NSR) from Premier Gold Mines Limited (TSX:PG) on January 28, 2013.