sandstorm payment, page-7

Hi all,

If you look at the Annual Report for FY 12/13 you can find the relevant information on Page 61 of the PDF, or Page 59 if you prefer to use the document numbering (http://www.mutinygold.com.au/images/stories/Mutiny_Gold_Ltd_-_Annual_Report_to_Shareholders.pdf)

" As part of the amended Metals Purchase Agreement with Sandstorm Gold Ltd, described in the Events After the Balance Date (Note 27), the Company renegotiated the terms of the loan provided by Sandstorm where no principal or interest is required to be repaid before 16 April 2015. Until that date interest will accrue at 10% pa, calculated monthly as per the amended Metals Purchase Agreement executed subsequent to 30 June 2013. Upon Mutiny notifying Sandstorm, at any time before the 16th of April 2015, that in the opinion of Mutiny, acting reasonably, it has sufficient capital in hand in order to construct and develop the Deflector Gold-Copper project, the loan will be extinguished and be converted into a Metals Purchase Stream where Sandstorm is entitled to purchase 2.6%, of the gold produced at the Deflector Gold-Copper Project at a price of USD$500/oz,. In the case of Mutiny not being in a financial position to provide the notice as described above, the principal and accrued interest will fall due on the 16th of April 2015. The financial impact of this will shift the $6,261,087 current Sandstorm borrowings into a Non-Current liability classification."

As 71c4 mentioned, the announcement on 20th August, 2013 that basically signaled Sandstorm pulling the plug on project funding, should be read in conjunction with the above. Strangely enough MYG don't list this 20/08/13 announcement in their archive.

Happy to stand corrected but I make it 7 months before payment is due or...better still...before we sell Sandstorm 2.6% of gold production