As a result of the closing of the first tranche of the Placement, Sandstorm now holds 28,000,000 common shares of the Company representing approximately 19.8% of the issued and outstanding shares of the Company.
Pursuant to the Placement, Sandstorm was also granted the right (for so long as Sandstorm owns greater than 15% of Luna) to maintain its ownership percentage through future private placements or public offerings by Luna. Sandstorm was also granted the right to appoint one member to Luna’s Board of Directors (the "Board") and, accordingly, has appointed David Awram, Senior Executive Vice President of Sandstorm, to the Board. In addition, Mr. Luis Baertl has stepped down as Chairman of Luna’s Board and has been succeeded as Chairman by Luna’s current lead independent director, Mr. Steven Krause.
The Placement Shares purchased by Sandstorm will be subject to a four month plus one day hold period. The proceeds from the Placement will be used by the Company for expenditures related to the Aurizona mine, ongoing brownfields and greenfields exploration at and around the Aurizona mine, and for general working capital purposes.
