Sandstorm Gold Ltd. announced that it has entered into a precious metals purchase agreement with Colossus Minerals Inc. to purchase an amount of gold and platinum from the Serra Pelada Mine located in Para, Brazil. Sandstorm Gold has agreed to purchase an amount equal to 1.5% of the gold and 35% of the platinum produced from Serra Pelada. Pursuant to this agreement, Sandstorm Gold will pay an upfront cash deposit to Colossus of $60 million and ongoing per ounce payments equal to the lesser of $400 per ounce of gold and the prevailing market price of gold, and the lesser of $200 per ounce of platinum and the prevailing market price of platinum.

As part of the transaction, Sandstorm Gold has also agreed to purchase 35% of the palladium produced from Serra Pelada in exchange for paying a $15 million deposit (bringing the total deposit payment made by Sandstorm Gold to $75 million) plus ongoing payments of $100 per ounce of palladium. In addition, Sandstorm Gold has entered into a back-to-back agreement with Sandstorm Metals & Energy Ltd. whereby Sandstorm Metals has purchased the Palladium Purchase Agreement from Sandstorm Gold in exchange for issuing a promissory note. Colossus will have the option, until April 1, 2015, to purchase in whole or in part, up to 50% of the obligation to purchase metals under the Precious Metals Purchase Agreement and the Palladium Purchase Agreement by making a $48.75 million payment, whereupon the percentage of gold and platinum to be purchased by Sandstorm Gold shall be decreased to 0.75% and 17.5% respectively and the percentage of palladium to be purchased by Sandstorm Metals shall decrease to 17.5%.