Sandstorm Metals & Energy Ltd. has been informed that Novadx Ventures Corp. will not be proceeding with the acquisition of the assets of Ikerd Mining LLC and affiliated companies. Sandstorm Energy will no longer be remitting the $8-million (U.S.) payment that was due to Novadx upon the completion of the Ikerd acquisition.

As a result, Sandstorm Energy has over $40-million (U.S.) in cash with which to pursue additional commodity streaming transactions. In addition, Sandstorm Energy has minimum cash flow guarantees from its partners totalling $94-million (U.S.). The minimum cash flow guarantees and cash on hand total $134-million (U.S.).

Sandstorm Energy has a purchase agreement with Novadx to acquire 25 per cent of the first 3.8 million tons of metallurgical equivalent coal produced and 16 per cent of the life mine metallurgical equivalent coal produced thereafter from the Rosa mine and the Rex No. 1 mine.