Aurizona gold mine is projected to produce about 125,000oz of gold a year and Sandstorm will contribute 17% of the capital expenditure required for Phase I expansion.

Additionally, Sandstorm will also provide a debt facility of $20m to Luna for both production expansion and drilling expenditure at the mine.

Luna president and CEO John Blake said that the company was financially positioned to undertake the Phase I Expansion Project.

"With the available debt facilities, cash on hand, and capital contributions from Sandstorm, Luna is now poised to both increase cash flows from additional production and further strengthen our balance sheet."