The Santa Elena Mine is located in northern Mexico approximately 150 kilometres northeast of Hermosillo in Sonora State and is operated by SilverCrest Mines Inc. (TSXV:SVL). Santa Elena is an open pit heap leach operation that is currently in production and is ramping up towards full capacity of 2,500 tonnes per day. Santa Elena is expected to produce an average of 30,000 ounces of gold and 500,000 ounces of silver per year for an 8 year mine life. Santa Elena is classified as a high level, low sulphidation epithermal system and further exploration of the mine is focused on a single relatively wide vein with increasing grades as it plunges. Several other mineralized showings related to other veins have been found on the concessions and will be investigated in the future. To view the NI 43-101 technical reports click here and here. Sandstorm Transaction Sandstorm has acquired 20% of the life of mine gold production from Santa Elena for an upfront payment of US$12 million in cash and 3.5 million common shares in Sandstorm plus ongoing per ounce payments equal to the lesser of US$350 and the then prevailing market price per ounce of gold. Sandstorm will not be required to contribute to capital or exploration expenditures in respect of the mining operations of Santa Elena. In the event that SilverCrest completes a positive technical report on an underground portion of the Santa Elena Project, Sandstorm will have the right (but not an obligation) to purchase 20% of the payable gold from the Santa Elena Underground Mine for an upfront payment that is equal to 20% of the upfront capital expenditures made by SilverCrest, adjusted pro rata for the gold to gold equivalent ratio of silver, plus ongoing per ounce payments equal to the lesser of (a) US$450 and (b) the then prevailing market price per ounce of gold.