Bear Creek Mining : Material Document - Gold Purchase Agreement

EXECUTION VERSION

SANDSTORM GOLD LTD.

AND

BEAR CREEK MINING CORPORATION

GOLD PURCHASE AGREEMENT

DECEMBER 16, 2021

	TABLE OF CONTENTS
ARTICLE 1 INTERPRETATION..................................................................................................	2
1.1	Definitions.....................................................................................................................	2
1.2	Statutory References ...................................................................................................	20
1.3	Interpretation...............................................................................................................	21
1.4	Construction ................................................................................................................	21
1.5	Days ............................................................................................................................	21
1.6	Dollar Amounts...........................................................................................................	21
1.7	Schedules ....................................................................................................................	21
ARTICLE 2 PURCHASE AND SALE OF REFINED GOLD ....................................................	22
2.1	Fixed Gold Deliveries .................................................................................................	22
2.2	Variable Gold Deliveries ............................................................................................	22
2.3	Delivery Obligations From and After the Variable Delivery Start Date ....................	22
2.4	General Delivery Terms..............................................................................................	23
2.5	Invoicing .....................................................................................................................	24
2.6	Purchase Price .............................................................................................................	24
2.7	Payment.......................................................................................................................	24
ARTICLE 3 ADVANCE PAYMENT..........................................................................................	25
3.1	Advance Payment .......................................................................................................	25
3.2	Conditions Precedent ..................................................................................................	25
3.3	Satisfaction of the Advance Payment Funding Conditions ........................................	29
3.4	Use of Advance Payment............................................................................................	29
ARTICLE 4 TERM.......................................................................................................................	30
4.1	Term ............................................................................................................................	30
ARTICLE 5 REPORTING; BOOKS AND RECORDS ..............................................................	30
5.1	Reporting Requirements .............................................................................................	30
5.2	Books and Records .....................................................................................................	32
5.3	Technical Data ............................................................................................................	32
5.4	Inspections ..................................................................................................................	33
5.5	Confidentiality ............................................................................................................	34
ARTICLE 6 COVENANTS .........................................................................................................	35
6.1	Conduct of Operations ................................................................................................	35
6.2	Processing/Commingling ............................................................................................	36
6.3	Preservation of Corporate Existence...........................................................................	37
6.4	Owner of Mine Assets ................................................................................................	37
6.5	Insurance .....................................................................................................................	38
6.6	Abandonment ..............................................................................................................	39
6.7	Offtake Agreements ....................................................................................................	39
6.8	Negative Pledge ..........................................................................................................	40
6.9	Right of First Refusal..................................................................................................	40

6.10	No Amendments .........................................................................................................	41
ARTICLE 7 TRANSFERS OF INTEREST .................................................................................	41
7.1	Transfers and Change of Control ................................................................................	41
7.2	Permitted Transfers and Change of Control ...............................................................	42
7.3	Change of Control of the Seller ..................................................................................	46
7.4	Transfers by the Seller ................................................................................................	46
7.5	Transfers by the Purchaser..........................................................................................	46
7.6	Restricted Persons .......................................................................................................	46
ARTICLE 8 SECURITY ..............................................................................................................	46
8.1	Security .......................................................................................................................	46
ARTICLE 9 REPRESENTATIONS AND WARRANTIES........................................................	50
9.1	Representations and Warranties of the Seller .............................................................	50
9.2	Representations and Warranties of the Purchaser.......................................................	50
9.3	Survival of Representations and Warranties...............................................................	50
9.4	Knowledge ..................................................................................................................	50
ARTICLE 10 DEFAULTS AND DISPUTES ..............................................................................	50
10.1	Events of Default ........................................................................................................	50
10.2	Purchaser Remedies ....................................................................................................	51
10.3	Indemnity ....................................................................................................................	52
10.4	Disputes.......................................................................................................................	53
ARTICLE 11 ADDITIONAL PAYMENT TERMS ....................................................................	53
11.1	Payments .....................................................................................................................	53
11.2	Taxes ...........................................................................................................................	54
11.3	Refund of Gross-up.....................................................................................................	54
11.4	Change in Tax Laws ...................................................................................................	54
11.5	Interest.........................................................................................................................	55
11.6	Set Off .........................................................................................................................	55
ARTICLE 12 GENERAL .............................................................................................................	56
12.1	Further Assurances......................................................................................................	56
12.2	No Joint Venture .........................................................................................................	56
12.3	Treatment and Characterization ..................................................................................	56
12.4	Governing Law ...........................................................................................................	56
12.5	Time ............................................................................................................................	56
12.6	Costs and Expenses.....................................................................................................	56
12.7	Survival .......................................................................................................................	57
12.8	Invalidity .....................................................................................................................	57
12.9	Notices ........................................................................................................................	57
12.10	Press Releases .............................................................................................................	57
12.11	Amendments ...............................................................................................................	58
12.12	Beneficiaries ...............................................................................................................	58
12.13	Entire Agreement ........................................................................................................	58
	ii

12.14	Waivers .......................................................................................................................	58
12.15	Counterparts ................................................................................................................	58

iii

THIS GOLD PURCHASE AGREEMENT dated as of December 16, 2021

BETWEEN:

SANDSTORM GOLD LTD., a company existing under the laws of the Province of British Columbia,

(the "Purchaser")

AND:

BEAR CREEK MINING CORPORATION, a company existing under the laws of the Province of British Columbia,

(the "Seller")

RECITALS:

1. The Owner owns a 100% interest in the Mining Concessions, and is the owner of the Mine Assets and the operator of the Mine.
2. Pursuant to a Share Purchase Agreement dated December 16, 2021 between the Seller, Premier Gold Mines Limited, and Equinox Gold Corp. (the "Share Purchase Agreement"), the Seller (or one or more Affiliates of the Seller as its nominee) has agreed to purchase and acquire from Premier Gold Mines Limited all of the issued and outstanding shares in the capital of CanCo and Premier Gold Mines (Cayman) Ltd. and all of the issued and outstanding membership interests in Premier Gold Mines (Netherlands) Cooperatie U.A (the "Share Purchase Transaction").
3. CanCo and MGH are the shareholders of the Owner.
4. Upon the completion of the Share Purchase Transaction, the Seller will become the indirect sole shareholder of the Owner, and will become the indirect owner of the Mine.
5. The Purchaser has agreed to fund a portion of the cash consideration payable by the Seller to Premier Gold Mines Limited under the terms of the Share Purchase Agreement by paying the Advance Payment to the Seller in accordance with the terms of this Agreement.
6. In consideration for the payment of the Advance Payment by the Purchaser to the Seller in accordance with the terms of this Agreement:
7. 1. during the Fixed Delivery Period, the Seller has agreed to sell and deliver to the Purchaser, and the Purchaser has agreed to purchase and accept delivery from the Seller of, an amount of Refined Gold equal to the Fixed Deliveries, subject to and in accordance with the terms and conditions of this Agreement; and