- Royalty North Partners Ltd. (RNP) has entered into a share purchase agreement with Sandstorm Gold Ltd.
- The agreement makes it possible for RNP to acquire an approximately 25.2 per cent stake in Entrée Resources Ltd
- RNP will acquire 49,672,515 common shares in the capital of Entrée from Sandstorm for a deemed value of $0.87 per Entrée share,
- That is in consideration for a promissory note in the principal amount of $43.2 million
- Royalty North Partners Ltd is a company, principally engaged in providing loan and royalty financing services
- Royalty North Partners Ltd was unchanged at $0.55 at 2:09 PM ET
Royalty North Partners (RNP) has signed a share purchase agreement with Sandstorm Gold to acquire a stake in Entrée Resources Ltd.
The Entrée share purchase will be completed in connection with RNP’s reverse takeover transaction with Sandstorm. Under the transaction, RNP will acquire certain copper-gold assets from Sandstorm, repositioning RNP as a high-growth copper mining company.
Under the terms of the Entrée share purchase, RNP’s wholly-owned subsidiary, 1363013 B.C., Ltd, will acquire 49,672,515 common shares of Entrée from Sandstorm for a deemed value of $0.87 per Entrée share.
That will be in consideration for a promissory note in the principal amount of $43.2 million
Before the Entrée share purchase, RNP did not own any common shares of Entrée. Following the Entrée share purchase, RNP will own 49,672,515 Entrée shares, representing approximately 25.2% per cent of the issued and outstanding common shares of Entrée on a non-diluted and diluted basis.
Before the Entrée share purchase, Sandstorm owned 49,672,515 Entrée shares, representing approximately 25.2 per cent of the issued and outstanding common shares of Entrée on a non-diluted and diluted basis.
Following the transaction, Sandstorm will not own any common shares of Entrée.
The Entrée share purchase is being completed in line with the terms of an amended and restated letter of intent between RNP and Sandstorm in connection with the RTO Transaction.
The 49,672,515 Entrée shares will be purchased by way of private agreement with a single vendor at a price less than 115 per cent of the “market price” of the common shares of Entrée in reliance on the “private agreement exemption” in Section 4.2 of National Instrument 62-104 Take-Over Bids and Issuer Bids.
Royalty North Partners Ltd is a company, principally engaged in providing loan and royalty financing services.
Royalty North Partners Ltd was unchanged at $0.55 at 2:09 PM ET.
