Following the acquisition, Mariana will now operate as a wholly owned subsidiary of Sandstorm.
The total consideration of the deal included 32,832,813 new Sandstorm shares and cash consideration of around $48m.
Through the acquisition, Sandstorm will have access to Mariana’s Hot Maden anchor asset in Turkey, which is expected to increase its gold equivalent ounces to more than 135, 000oz by 2022, as well as operating cash flow to more than $100m.
Sandstorm Gold president and CEO Nolan Watson said: “Hot Maden is one of the highest grade undeveloped projects in the world and will add high-margin ounces to Sandstorm’s production profile.
“Opportunities to acquire anchor assets like Hot Maden are rare and with the exploration potential that we see on the property, we anticipate that our 30% interest will continue to grow in value over time.”
A recently completed preliminary economic assessment of Hot Maden indicated an after-tax net present value (NPV) of $1.37bn and internal rate of return (IRR) of 153% respectively.
Hot Maden currently focuses on a 7km alteration zone. It is a high-grade, low-cost asset, and its total land package is 74km² in size.
It has an indicated mineral resource of 3.43 million gold equivalent ounces.
In addition, the acquisition of Mariana includes exploration properties in Côte d’Ivoire, Turkey, and Argentina.
Sandstorm has started the process to spin-out the exploration properties into a separate public company and plans to retain net smelter return royalties, as well as equity in the spin-out.
The process is scheduled to be completed within six to 12 months.