VANCOUVER (miningweekly.com) – Gold streaming and royalty firm Sandstorm Gold has sold ten-million common shares, or 18.2%, of Africa-focused junior explorer Pinecrest Resources, raising gross proceeds of C$21-million.
The transaction reduces Sandstorm’s holdings in Pinecrest to zero.
However, Sandstorm retains ten-million share purchase warrants of Pinecrest, which if exercised, would result in Sandstorm holding 13.9% of the then issued and outstanding Pinecrest shares, on a partially diluted basis.
Pinecrest is a Vancouver-based explorer that is conducting mineral exploration and development of its 100% owned Enchi gold project, in Ghana.
Pinecrest has recently raised C$1.5-million, which it will put to work on achieving its goals at Enchi.
Sandstorm and Pinecrest entered into a strategic alliance in 2014 to develop Enchi, which is also part owned (19.9%) by Kinross Gold, and currently holds about one-million ounces of gold in the inferred resource category.