By Adriano Marchese

Sandstorm Gold Ltd. said Tuesday that it has agreed to a gold-stream and royalty agreement with Vatukoula Gold Mines PTE Ltd. and to the purchase of a royalty package on a portion of Vale SA's operations, both of which the company said will boost revenues up to $15 million a year.

The Vancouver-based company which operates on gold royalties said it will acquire a gold stream on the operating Vatukoula gold mine in Fiji in exchange for a $30 million upfront deposit.

From this stream, the company said deliveries are fixed for the first six years, growing from 2,280 ounces of gold a year for the first 24 months to 5,340 per year for the next four years.

Additionally, Sandstorm said that it has acquired 9.3 million units of Vale's participating royalties providing life-of-mine net sales royalties on certain of the company's producing assets at a price of $108 million.

In total, royalties are estimated to contribute additional revenue of between $12 million and $15 million a year for the next five years.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

06-29-21 0739ET