Sandbox Royalties, a new diversified metals royalty firm, was unveiled today by Equinox Gold (TSX: EQX) and Sandstorm Gold (TSX: SSL).
Equinox and Sandstorm have each entered into definitive purchase and sale agreements with Rosedale Resources, whereby Rosedale will acquire a portfolio of royalties from Equinox for $28.4 million in Rosedale common shares and from Sandstorm for $65 million in Rosedale common shares and $32.9 million in a promissory note convertible into Rosedale common shares, according to a press release.
Rosedale expects to rebrand as Sandbox Royalties after the transaction closes, with a portfolio of 23 metals royalties spread across a variety of assets and jurisdictions, including the existing royalties held by Rosedale.
“Sandbox will have exposure to a variety of resource royalties, including gold, silver, copper, zinc, graphite, and uranium,” Equinox stated. “Sandbox will have immediate cash flow from generating royalties, a robust treasury, and significant leverage to improving metal prices and resource growth.”
The royalties obtained from Sandstorm and Equinox will help to diversify the business’s portfolio by allowing it to invest in a variety of producing and development stage assets, according to the company.
Sandstorm and Equinox will have a 34 percent and 30 percent basic stake in Sandbox, respectively, allowing them to participate in and facilitate the company’s future growth.