Every why hath a wherefore

Serra Pelada: Sandstorm $SAND (SAND) (SSL.to) takes over negotiations

You want to know how things are going with the Serra Pelada fubar, don’t you? Well of course you do, so here the latest from local bizrag Notícias de Mineração Brasil (Brazil Mining News) (translated). Hope Nolan Watson likes it in Brazil, looks like he’s going to get used to the place.

The CEO of Sandstorm Gold, Nolan Watson, met last week with representatives of the Cooperative Mining Prospectors of Serra Pelada (Coomigasp) to discuss the Serra Pelada gold and palladium  project in Para State. Sandstorm is the majority shareholder in Colossus Minerals, JV partner with Coomigasp in the Serra Pelada Mineral Development Company (SPCDM).

Nolan Watson is a Canadian wunderkind entrepreneur known for his contribution to financial innovation in the mining sector. At 26 he was appointed CFO of Silver Wheaton, where he developed a business model based on advance purchase of precious metals at fixed prices. It raised $ 1 billion which made it into the largest streaming company in the world. 

The meeting took place in Curionópolis (Para) and was attended by the negotiation intermediary Marcos Alexandre Mendes, COOMIGASP miners’ representatives Gildásio Vieira and José Antônio Vieira, lawyer Marques Ivaldo, the JV legal team, and Francisco Carlos Oliveira Lima who is technical advisor and production manager Coomigasp production. 

According to Francisco Carlos Lima, the CEO of Sandstorm CEO said the intention is that mining company builds a new relationship with Coomigasp and the Curionópolis community. He took the opportunity to say that the new board of  Colossus is working on a restructuring. 

Watson presented the name of a new board member of Colossus in Brazil, who is Canadian, but the name has not been disclosed. Brazil Mining News (NMB) contacted Sandstorm in Canada but was told that only John Frostiak, director and chairman of the board of Colossus can talk about the development. During the meeting , the negotiation intermediary submitted the proposals and demands of Coomigasp, which include the correction of the percentage participation in the project to 49% for cooperative and 51 % for the mining company, as per the original agreement. 

The cooperative also asked for the handing over of technical design data to Coomigas. “Coomigasp is partner in the project, but does not have access to data” said the aide. The trustee also requested that conditions be satisfied in relation to the treatment of water in the region and community care programs for the elderly population. ” The elderly population in the region is very large, especially the miners who came and stayed for years here,” said Lima. 

According to Lima, Watson promised to think about the proposals and come back to Brazil after the 15th of April, at which time another meeting with the Cooperative will be scheduled. 

The Sandstorm representative said that it is looking for new partners to finance the continuation of the Serra Pelada gold project .

Full report here

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