Sandbox Royalties Update–Blackwater Royalty Acquisition Closed, Greenstone Revenue Commenced & Private Placement

Vancouver, BC — Sandbox Royalties Corp. (“Sandbox Royalties”, “Sandbox”, or the “Company”) announces the closing of the Blackwater royalty acquisition, the commencement of gold deliveries under the Greenstone gold purchase agreement, and commitments for a C$7.0 million fully-subscribed non-brokered equity private placement. 

Blackwater Royalty Closing     

Further to Sandbox’s press release dated October 31, 2023, Sandbox reports that on November 30, 2023 it completed the acquisition of a 0.21% net smelter return (“NSR”) royalty on a portion of Artemis Gold’s (“Artemis”) Blackwater project (“Blackwater”). Artemis recently provided an update on construction progress at Blackwater confirming overall construction was 45% complete, and that the project remains fully-funded, and on schedule for first gold pour in H2 2024. Additionally, Artemis announced that the results of a study to evaluate the benefits of advancing a phase 2 expansion earlier than contemplated in the 2021 Feasibility Study are expected to be released in early 2024. 

Greenstone Gold Purchase Agreement

Additionally, on November 15, 2023, Sandbox received its first gold deliveries and subsequently completed its first gold sale in relation to the Greenstone gold purchase agreement.  A total of 350 ounces (the monthly minimum) of gold were sold at an effective price of approximately $1984/oz, generating gross proceeds of approximately $0.7 million to Sandbox. Under the Greenstone gold purchase agreement, Sandbox is entitled to receive monthly gold deliveries equal to the greater of 350 gold ounces, and 1.26% of the monthly gold production from the Greenstone mine (on a 100% basis). On November 20, 2023, Equinox Gold announced that the Greenstone mine was 96% complete, that pre-commissioning activities were ongoing, and that the first gold pour was expected in H1 2024.

Fully-Subscribed Private Placement      

Sandbox further announces that it has received firm commitments to raise equity proceeds of approximately C$7.0 million via a fully-subscribed non-brokered private placement of common shares at a price of C$0.70 per share, pursuant to which Sandbox will issue approximately 10.0 million common shares. The Company intends to use the proceeds from this private placement to reduce debt and for general corporate purposes.  The private placement is expected to close later in December.    

“Following our announcement of the acquisition of the Greenstone gold purchase agreement, the El Pilar gross revenue royalty, and the Blackwater NSR, as well as the associated financings with our new strategic capital partners, several existing shareholders of Sandbox expressed a desire to further invest and support Sandbox – particularly in light of the significant advances made by the Company since our equity financing in June 2022. This private placement allows subscribers to invest at the same price as the equity that was issued to Regal Funds and Beedie Capital,” said John Armstrong, CEO of Sandbox Royalties.  “We appreciate the support of all our shareholders who continue to demonstrate their belief in the Company’s vision to create a leading diversified metals royalty and steaming company.”         

For more information about Sandbox Royalties, please visit our website at www.sandboxroyalties.com or email us at info@sandboxroyalties.com