Toronto-listed companies Equinox Gold and Sandstorm Gold on Thursday announced the creation of a new diversified metals royalty company, with assets in the Americas and Europe.
Equinox Gold and Sandstorm have entered into definitive purchase and sales agreements with Rosedale Resources, whereby Rosedale will acquire a portfolio of royalties from Equinox Gold for $28.4-million in shares of Rosedale and $32.9-million in promissory notes convertible into common shares of Rosedale.
Upon closing, Rosedale would change its name to Sandbox Royalties, led by president and CEO Greg Smith, chairperson Marcel de Groot, CFO Victorian McMillan and general counsel Craig Rollins.
Smith would transition from Equinox Gold president to the new role at Sandbox and would continue to represent Equinox Gold on the boards of its previous spin-out companies, Solaris Resources and i-80 Gold.
“Greg Smith will be an exceptional leader for Sandbox Royalties. His industry knowledge and corporate development skills have been integral to Equinox Gold’s growth and success over the last five years,” said Equinox CEO Christian Milau.
Ross Beaty, Equinox Gold chairperson, said that Smith would focus on building Sandbox, while Equinox would slow its merger and acquisition activities to focus on developing its internal growth pipeline, including the new Santa Luz gold mine, in Brazil, and the large expansion projects at Los Filos, Aurizona and Castle Mountain, as well as the Greenstone construction project.
Post-completion of the transaction, Sandbox intends to seek a public listing on a Canadian stock exchange. Listing of Sandbox is subject to approval of the applicable stock exchange.