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SN3165 (< 20)

A Big Week For Sandstorm

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August 22, 2012 – Comments (11) | RELATED TICKERS: SAND , BRD.DL , SLW

First, they get listed on the NYSE....

Now, this:

 "Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (SSL.V)(SAND)(SAND) is pleased to announce that it has entered into an agreement with a syndicate of underwriters pursuant to which they have agreed to purchase, on a bought deal basis, 7,500,000 units (the "Units") at a price of Cdn $10.00 per unit for gross proceeds to the Company of approximately Cdn $75 million."

This gives them available capital upwards of $150+ million ($75 mill + $50 mill credit facility plus cash on hand of roughly $30 mill). 

I smell a deal in the works. 

This leaves them with about 77.5 million shares outstanding after it closes. 

11 Comments – Post Your Own

#1) On August 22, 2012 at 5:23 PM, SN3165 (< 20) wrote:

I want to mention that I am a strong buyer of Kimber Resources and Pilot Gold here.  Kimber will be releasing a new resource estimate in early September and is a likely buyout candidate (or perhaps stream  partner with Sandstorm?) and Pilot, seeing recent insider buying, is a well-managed company with exciting properties in Turkey and Nevada. Kimber at .70 and Pilot at $1 will not last. DYODD!

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#2) On August 23, 2012 at 11:34 AM, XMFSinchiruna (27.20) wrote:

Ha... when you wrote Pilot, I read Primero, so I started top write a diatribe about why this was not a great time to be buying more Primero shares, and that the time to be a buyer was last month near $2.50. :) I locked in some profits on Primero today, though it's still a very major long-term holding for me.

Yes, I think Pilot is a great buy near $1. Kimber is already my sixth largest holding, so personally I'm not looking to add more.

Aside from Primero, the two other stocks that I was adding most aggressively in recent months were Sabina Gold & Silver and Impact Silver. Sabina's overdue breakout has commenced in grand style, and Impact's has just began following a terrific Q2 report.

I am also thrilled with my holdings in Wildcat Silver and Balmoral Resources. Even Hecla is climbing back strongly. I added Major Drilling near $10, Soltoro at $0.43, Alexco at $3.35, and Newstrike at $1.37 all within the past few weeks. It's been an August to remember. And today I added Sandstorm Gold and Sandstorm Metals & Energy, as an homage to the longstanding dedication to those stocks by my faithful community of readers.

I'm losing track of the number of stocks in my portfolio that have enjoyed surges of 30-40% or more over the past several days. I've restored a touch of cash to my previously depleted rainy day cash fund, but for the most part I am letting it all ride since I feel this is just the beginning of a truly epic surge for the pm equities over the long haul.

For all those shorter-term-minded folks who ran clear away from pm stocks during the protracted downturn and criticized my unfazed bullish long-term outlook, I hope they all have quick trigger fingers, because when these stocks regain momentum, they are capable of doing so at breakneck speed.

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#3) On August 23, 2012 at 11:58 AM, Momentum21 (42.25) wrote:

Are you guys still following Scorpio? 

Congrats on the strong comeback...had to have been gut wrenching. : ) 

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#4) On August 23, 2012 at 12:16 PM, XMFSinchiruna (27.20) wrote:

I can't help but to follow it... it was most unfortunately my #1 silver pick for 2012 before those disastrous developments unfolded. But following my own advice from my initial recommendation, I initiated with only a small partial position, and added shares into the first selloff bottom and then added bid after the subsequent drop near 0.50. As a result, the stock is now even with my consolidated cost basis, and I have reduced my position just in case any further dips permit me to lower my cost basis further still.

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#5) On August 23, 2012 at 12:16 PM, XMFSinchiruna (27.20) wrote:

that was supposed to read "added big"...

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#6) On August 23, 2012 at 1:00 PM, johnybottom (< 20) wrote:

Sinchiruna: congrats on turning back to positive CAPS points.

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#7) On August 23, 2012 at 1:08 PM, XMFSinchiruna (27.20) wrote:

Thanks! You too... imminently, that is. :)

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#8) On August 23, 2012 at 1:18 PM, XMFSinchiruna (27.20) wrote:

I just caved and added more Kimber shares as well. There's simply too great a margin of safety to ignore between the project economics and the prevailing price environment. :)

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#9) On August 23, 2012 at 4:13 PM, SN3165 (< 20) wrote:

Kimber is just too compelling... with an update to the resource coming and higher gold/silver prices now.... it's just a no-brainer, I think.

During the downturn I added to my positions in Scorpio, Alexandria, PC Gold, Brigus, Northern Tiger, etc. Northern Tiger and PC are riskiest but I think big things are ahead for both, especially Northern Tiger. I like the high-risk, high-reward plays and I do feel like the explorers will make a comeback. 

I wish I could have started new positions in Wildcat and Soltoro, although I did that Youtube video months ago on them both stating that I would be. But I was too focused on averaging down my current positions.

You're right about Primero, I was convinced at $2.40, it was stupid cheap! Insider buying at those levels as well! I jumped at that opportunity and recently sold like 15 percent of my position over $4, money that goes directly back into stocks like Kimber and Pilot...When you talk about a stock that has the shortest term potential, Kimber takes the crown right now IMO.

On the sell side, I sold all of my position in Aurcana at .95 just to take profits and to put it in the Silver wheaton warrants, which I'm glad I did. Just a hunch I guess. I also sold half my position in Metanor, just a gut feeling.

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#10) On August 23, 2012 at 10:34 PM, skypilot2005 (< 20) wrote:

I initiated a position in ISVLF (Impact) this week.  I had been researching it on and off for six months.  I feel real comfortable with the assets and management.  Mr. Sprott is also, the largest shareholder.   When either he or Nolan Watson invest,  I take notice.

I like Metanor.  I will be increasing my position substantially, soon.  Sandstorm is involved there.

Have any of you looked at Terraco Gold?  TCEGF  I just purchased another large “chunk” this week.  The CEO is very sharp.

I own PC Gold, Brigus and a lot of Alexandria.

My cost on PPP is $3.335.  I am up over 34%. Thanks, to Sinchi.   I am staying  “pat”.  I am an investor not, trader.

I have a lot of Aurcana.  I may buy some more if, it drops further.

The Sandstorms (both) are my largest positions in terms of dollar value.  #s 1 & 2.

Sky

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#11) On August 26, 2012 at 4:20 PM, skypilot2005 (< 20) wrote:

On August 23, 2012 at 4:13 PM, SN3165 (< 20) wrote:

 

"Kimber is just too compelling... with an update to the resource coming and higher gold/silver prices now.... it's just a no-brainer, I think."

 

http://www.nasdaq.com/symbol/kbx/institutional-holdings

http://www.reuters.com/finance/stocks/KBX/key-developments/article/2574905

Kimber Resources, Inc. Announces $5 Million Bridge Loan Credit Facility

7/18/12

 

Kimber Resources, Inc. announced that it has entered into a bridge loan credit facility with Sprott Resource Lending Partnership (SRLP). The Facility shall be for a maximum principal amount of $5 million at an interest rate of 12% per annum, payable monthly. The Facility has been made available through a $3 million drawdown on the closing date (the First Advance), and a $2 million drawdown which can be made within 120 days thereafter (the Second Advance). The proceeds of the Facility will be applied to the development of the Monterde project and for working capital and general and administrative purposes. The term of the Facility is one year, which may be extended for an additional six months."

Sky 

 

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