Precious metals streamer Sandstorm Resources Ltd. (TSX-V:SSL) plans to spin its option on a Saskatchewan uranium property into a new company.
The venture would be called Sandstorm Energy & Base Metals Ltd., and would begin operations with $500,000 in working capital.
The parent company's business model focuses on up front payments in exchange for metal streams from existing mines.
"We are excited to move the volumetric production payment model into commodities other than precious metals," said Nolan Watson, Sandstorm's president and CEO.
Watson was the former CFO of Silver Wheaton Corp. (TSX:SLW), which is now the largest silver streaming company in the world.
Watson said the parent company would remain unchanged, and 100% of the common shares of the new company would be distributed to Sandstorm shareholders on a pro rata basis.
The transaction remains subject to regulatory, shareholder and court approval.
Sandstorm's share price range during the past week: $0.77 and $0.78; 52-week high: $0.80; 52-week low: $0.32.