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May 27, 2022

Equinox Gold and Sandstorm establish new metals royalty company

Sandbox, which will have assets in the Americas and Europe, would consider public listing on a Canadian stock exchange.

Equinox Gold and Sandstorm Gold have launched a new diversified metals royalty firm known as Sandbox Royalties Corp, with assets in the Americas and Europe.

Equinox and Sandstorm have each signed agreements with Rosedale Resources whereby Rosedale will acquire a portfolio of royalties from Equinox for $28.4m in Rosedale common shares.

Rosedale will also purchase royalties from Sandstorm for $65m comprising $32.9m in a promissory note convertible into Rosedale shares and $32.1m in Rosedale shares.

Upon completion of these deals, Rosedale will change its name to Sandbox Royalties.

Sandbox Royalties will be led by president and CEO Greg Smith, chairperson Marcel de Groot, CFO Victorian McMillan and general counsel Craig Rollins.

Equinox Gold CEO Christian Milau said: “Greg will continue to represent Equinox Gold on the boards of Solaris Resources and i-80 Gold and will transition from President of Equinox Gold to assume the new role of president and CEO of Sandbox Royalties.”

Sandbox will have exposure to several resource royalties including gold, silver, copper, zinc, graphite and uranium, and immediate cash flow from producing royalties.

Equinox Gold chairman Ross Beaty said: “Sandbox Royalties will create immediate and future value for Equinox Gold from our portfolio of royalties and will continue our close relationship with Sandstorm.

Beaty said Equinox Gold will slow its merger and acquisition activities.

It would instead shift its focus on developing an internal growth pipeline, including the new Santa Luz gold mine in Brazil; its expansion projects at Los Filos, Aurizona and Castle Mountain; and the Greenstone in-construction gold mine.

Sandbox plans a public listing on a Canadian stock exchange, which awaits the clearance of the applicable stock exchange. 

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