Vancouver, British Columbia--(Newsfile Corp. - June 6, 2024) - Sandbox Royalties Corp. ("Sandbox") has entered into a definitive purchase and sale agreement (the "Agreement") with B2Gold Corp. ("B2Gold"), pursuant to which it has agreed to acquire a portfolio of 10 royalties (the "B2Gold Royalty Portfolio") from B2Gold in exchange for approximately US$90 million in share consideration (the "Transaction"). (1) In connection with the Transaction, Sandbox has agreed to issue approximately 153.2 million common shares to B2Gold at a price of C$0.80/share. Additionally, in conjunction with the Transaction, Sandstorm Gold Ltd. ("Sandstorm Gold") has agreed to convert the remaining principal outstanding on its Sandbox convertible note (approximately US$14.2 million) into common shares at a price of C$0.80/share. In connection with the Transaction, Sandbox has changed its name to Versamet Royalties Corporation ("Versamet", or the "Company"). After giving effect to the Transaction and the conversion of the convertible note, the newly named Versamet will have approximately 464.1 million shares outstanding, held 33% by B2Gold, ~26% by Sandstorm Gold, ~13% Equinox Gold, ~7% Regal Funds, and 2% by Beedie Capital.
"This transaction creates a high-quality and financially strong royalty company with a portfolio of enviable assets that provides a robust platform for further growth," said John Armstrong, CEO of Versamet. "We are excited to welcome B2Gold as the largest shareholder in the newly named Versamet, as we continue to grow and build the next intermediate royalty company. The addition of two more near-term cash-flowing assets and significant optionality from eight other assets provides an even stronger base from which to capitalize on the opportunities we see ahead to enhance our business further. Combining the existing Sandbox portfolio with the newly acquired B2Gold royalty portfolio is expected to drive revenues from their current level of more than US$10 million in 2024 to over US$30 million in 2026." (2)
