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VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2012) - Magellan Minerals Ltd. (TSX VENTURE:MNM)(OTCQX:MAGNF) ("Magellan") is pleased to announce the closing of the previously announced transaction with Sandstorm Gold Ltd. ("Sandstorm") (see press release dated May 11, 2012), whereby Magellan will grant Sandstorm Gold Ltd. a 2.5% net smelter returns royalty ("NSR") on the Coringa gold project ("Coringa") and a 1.0% NSR on the Cuiu Cuiu gold project ("Cuiu Cuiu"), both of which are located in Para state, Brazil. As consideration, Sandstorm paid Magellan a cash payment of US$7.5 million and subscribed for one million common shares of Magellan at a price of $0.50 per share for total proceeds of $500,000. |
