Sandspring Resources Ltd. (TSX.V: SSP) ("Sandspring" or the "Company") is pleased to announce that it has amended its precious metals purchase agreement (the "PMPA") with Silver Wheaton Corp. (TSX:SLW / NYSE:SLW) ("Silver Wheaton") to extend the due date of a final feasibility study for the Company's Toroparu Mine in Guyana S.A. (the "Toroparu Project") from December 31, 2016 to December 31, 2017.
Under the PMPA, Silver Wheaton has committed a total of US$153.5 Million of which USD$15.5 Million has been advanced to Sandspring. Payment of the balance of the US$153.5 Million is subject to Silver Wheaton's election to proceed and is payable in installments during construction of the Toroparu Project once all necessary mining licenses have been obtained and conditions pertaining to final feasibility, the availability of project capital finance, the granting of security to Silver Wheaton and other customary conditions are satisfied.
Rich Munson, CEO, stated: "We began discussions with Silver Wheaton regarding an extension of the due date for the final feasibility study in light of the drill results received to date at Sona Hill (see the Press Releases dated February 13, 2016 and November 3, 2016). The drill results indicate the potential that higher grade, shallow gold‐only mineralization from Sona Hill could alter the mine plan that formed the basis of our work on the final feasibility study in 2014. The extension allows Sandspring to complete the 2016 drill program at Sona Hill, analyze the data and, based on those results, decide whether to revise the mine and processing plan for the Toroparu Project."
About Sandspring Resources Ltd.
Sandspring Resources Ltd. is a Canadian junior mining company currently moving toward a definitive feasibility study for the multi-million ounce Toroparu Project in the Guyana, South America. A prefeasibility study completed in May 2013 (NI 43-101 Technical Report, Prefeasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana, dated May 24, 2013 completed by SRK Consulting (U.S.), Inc., available on SEDAR at www.sedar.com) outlined the design of an open-pit mine producing more than 200,000 ounces of gold annually over an initial 16-year mine life. Additional information is available at www.sandspringresources.com or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..
