The Black Fox Mine is located outside of Matheson, Ontario, Canada in the Timmins Gold District and is 100% owned and operated by Primero Mining Corp. (TSX:P). The Black Fox Mine began operating as an open pit mine (depleted in 2015) and transitioned to underground operations in 2011. Primero has forecasted 60,000 to 70,000 ounces of gold production from Black Fox in 2016.
Sandstorm has a gold stream agreement to purchase 8% of the life of mine gold produced from Black Fox and 6.3% of the life of mine gold produced from the Black Fox extension (which includes a portion of the Pike River concessions) for a per ounce cash payment equal to the lesser of US$524 and the then prevailing market price of gold.
Sandstorm originally acquired a 12% stream on Black Fox from Brigus Gold Corp. for an upfront payment of US$56.3 million. The transaction included a partial buyback option which Brigus exercised in October 2012 for US$24.4 million to buyback 4% of the stream from Sandstorm. Primero acquired Brigus Gold in March 2014.