BaseCore is owned equally owned by Glencore and Ontario Teachers’ Pension Plan Board (OTPP).
Sandstorm Gold acquired nine royalties and one stream from BaseCore Metals by making a $425m cash payment and issuing $100m in Sandstorm common shares. This resulted in Glencore holding a 5% stake in Sandstorm.
Created in 2017 as a joint venture limited partnership, BaseCore is engaged in providing long-term financing to mining operators to support exploration and development, mine expansions, mergers and acquisitions, balance sheet flexibility and reclamation obligations.
Sandstorm president and CEO Nolan Watson said: “The closing of the BaseCore transaction is the first part of an exciting new chapter for Sandstorm.
“The addition of this royalty package will contribute meaningful immediate and long-term growth to the company’s portfolio and help position Sandstorm as the go-to mid-tier royalty company.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Glencore is expected to receive around $300m in cash and Sandstorm shares for its 50% stake in BaseCore. This includes retained cash on the balance sheet, which is planned to be distributed to Glencore.
RBC Capital Markets served as financial advisers for BaseCore and its limited partners for the transaction while Fasken Martineau acted as legal advisers.