Gold prices keep hitting record highs and Vancouver’s precious metals companies are looking to cash in.
Hours after Sandstorm Resources Ltd. (TSX-V:SSL) announced plans to raise $38 million via a bought deal financing Tuesday the gold-streamer upped the total to $50 million.
Sandstorm, which makes upfront payments to customers in exchange for gold when a mine begins production, said it plans to use the proceeds of the transaction for more metal stream acquisitions.
The Vancouver-based company already has four gold-streaming agreements in place and announced August 30 the first gold sales stemming from Luna Gold Corp.’s (TSX-V:LGC) Aurizona mine in Brazil.
Tuesday’s financing announcement also contains an option for underwriters to increase the total gross proceeds of the financing to $57.5 million for up to 30 days after the initial fundraising.
The deal is the largest financing Sandstorm has ever undertaken and comes at a time when many precious metals companies are looking to take advantage of record gold prices.
At press time, an ounce of gold was valued at $1,348.
Meanwhile, Sandstorm’s stock price dropped $0.08 to $0.75 per share.
Sandstorm’s stock has traded between $0.75 and $0.83 during the past week, with a 52-week high of $0.97 and a 52-week low of $0.32.