Sandstorm Metals & Energy Announces US$20 Million Payment to Donner Metals

Last Update: 7/25/2011 9:05:45 AM

VANCOUVER, BRITISH COLUMBIA, Jul 25, 2011 (MARKETWIRE via COMTEX) -- Sandstorm Metals & Energy Ltd. (SND) ("Sandstorm Metals") has completed a US$20 million payment to Donner Metals Ltd. (DON) ("Donner") in accordance with the copper purchase agreement announced on July 13, 2011. Under the terms of the agreement, Sandstorm Metals is entitled to purchase an amount equal to 17.5% of the life of mine copper produced from the Bracemac-McLeod Property which is operated by Xstrata Canada Corporation. Sandstorm Metals will purchase the copper at a per pound price equal to the lesser of US
.80 and the then prevailing market price of copper unless the price of copper falls below US$2.75 per pound, in which case the per pound price will be equal to the lesser of US
.55 and the then prevailing market price of copper.

Sandstorm Metal's payment to Donner was made with cash on hand, US$17.75 million as an upfront payment and the remaining US$2.25 million coming from the purchase of 6,428,571 common shares of Donner at US
.35 per share.

Donner will be using the proceeds for the development of the Bracemac-McLeod Property located in Matagami, Quebec. For more information on Donner Metals or the Bracemac-McLeod Property, please visit www.donnermetals.com .