Metanor Receives US$9M from Sandstorm
VAL-D'OR, QUEBEC -- (Marketwire) -- 03/30/11 -- Metanor Resources Inc. ('Metanor') (TSX VENTURE: MTO) is pleased to announce that Sandstorm Gold Ltd. ('Sandstorm') (TSX-V: SSL) has remitted US$9 million to Metanor in accordance with the gold purchase agreement announced on January 17, 2011. Under the terms of the agreement, Sandstorm is entitled to purchase, for the life of the mine, 20% of the future gold produced from Bachelor Lake Gold Mine located in Quebec, Canada for US$20 million plus ongoing per ounce payments equal to the lesser of US$500 (the 'Per Ounce Payments') and at the then prevailing market price per ounce of gold.
Sandstorm has made the following staged payments to Metanor; US$5 million upon signing of the agreement on January 17, 2011 and US$9 million, as Metanor has satisfied the required funding requirements with its recently announced over-subscribed $16.2M private placement, for a total of US$14M. The remaining US$6 million is scheduled for September 1, 2011.
As per the recent positive feasibility study, the Bachelor Lake Mine is projected to produce an average of 60,000 ounces of gold per year and will be utilizing the low cost, long hole mining method along with an existing, and fully functional, operating mill and surface infrastructure. Metanor also recently announced that it will be investing $1.4 million in definition drilling to increase the known measured and indicated mineral resources at Bachelor Lake.
Serge Roy, Chairman and CEO and Ghislain Morin, President and COO both stated 'This is a significant milestone for Metanor. With Sandstorm's US$20M commitment and our recently completed over-subscribed $16.2M financing, Metanor is fully funded to bring the profitable Bachelor Lake Project into production in 2012.'
About Metanor
Metanor is a Canadian based gold mining company with a focus on adding value per share through efficient exploration, and development of it properties. Maintaining a low risk profile through a strong operating team, sound financial management, and operating in secure jurisdictions like Quebec are key priorities for Metanor's management team.
Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed 'forward-looking statements'. All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.
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Contacts:
Metanor Resources Inc.
Ronald Perry
Vice-President
514-262-8286
rperry@metanor.ca
www.metanor.ca