Sandstorm Gold Ltd.’s $350 Million Credit Facility

Cassels acted for Sandstorm Gold Ltd. on its increase of credit facility.
Fasken assisted the lenders.

On October 6, 2021, Sandstorm Gold Ltd. amended and restated its credit facility to, inter alia, increase its revolving credit agreement to US$350 million.

This agreement incorporates sustainability-focused performance targets to establish an Environment, Social, and Governance (ESG) linked credit facility. The loan incorporates sustainability-linked incentive pricing terms that allow Sandstorm to reduce the borrowing costs by up to 5 bps as the sustainability performance targets are met.

The ESG goals of the company include: alignment with ESG Reporting Standards (achieve a certain percentage of producing assets reporting under sustainability and climate-related standards); External ESG Rating (maintain an MSCI ESG rating of “A” or better); and Diversity & Inclusion (maintain or improve diverse representation at the senior management and Board levels). 

With this, Sandstorm becomes the first royalty company with a credit facility linked to sustainability goals.

The Cassels’ team consisted of David Budd (Picture), Jennifer Wasylyk, Winda Chan and Jacob Robinson. 

The Fasken team included Thomas Meagher, Daniel Conrad and Martin Owusu.

Involved fees earner: David Budd – Cassels Brock & Blackwell LLP; Winda Chan – Cassels Brock & Blackwell LLP; Jennifer Wasylyk – Cassels Brock & Blackwell LLP;

Law Firms: Cassels Brock & Blackwell LLP;

Clients: Sandstorm Gold Ltd.;

Author: Sonia Carcano