Sandstorm has a gold stream agreement with Donner Metals Ltd. (TSXV:DON) (via a back-to-back agreement with Sandstorm Metals & Energy Ltd.), to purchase amount equal to 24.5% of the gold and gold equivalent produced from the Xstrata operated Bracemac-McLeod mine. Pursuant to the agreement, Sandstorm Gold made an upfront cash payment to Donner of US$8 million and will make ongoing per ounce payments equal to the lesser of US$350 and the then prevailing market price of gold. Donner Metals are the owners of a 35% joint venture interest in Bracemac-McLeod.

Here is an interesting article about Donner (c/o Elmo)

The article states for example that work is getting underway to prove up the McLeod Deep target, which has the potential to add a further seven years or more to the initial four years of mine life. Also exploratory holes pointed to a gold grade at an anomalous 1.1 grams per tonne, which is almost three times the average grade of the main deposit. Higher grades and longer mine life.....

Donner in ready in few months from now, to start crushing 3,000 tonnes of ore a day. With gold grades at 0.43g/t and silver at 28 g/t, the total gold equivalent ounces produced, would be around 32,000 ounces a year. Don't get fooled like me, with the 10,000 ounces Sandstorm has mentioned in their corporate presentation. This is just Donner's 35% share of the production at Bracemac Mcleod, while Sandstorm gets 24.5% of all ounces produced, thus around 8,000 a year instead of 2,500.