Royal Gold (NASDAQ:RGLD) is acquiring Sandstorm Gold (NYSE:SAND) and Horizon Copper Corp (TSX-V:HCU) for US$3.5 billion ($5.4 billion) and US$196 million respectively.
Scotiabank is serving as lead financial advisor and McCarthy Tétrault, Skadden Arps Slate Meagher & Flom, and Layton & Finger are serving as legal advisors to Royal Gold. Raymond James is also acting as financial advisor.
BMO Capital Markets is lead financial advisor and Cassels Brock & Blackwell and Crowell & Moring LLP are legal advisors to Sandstorm. National Bank of Canada is lead financial advisor and Fasken Martineau DuMoulin is legal advisor to the Sandstorm Special Committee. CIBC World Markets is also acting as financial advisor to the committee.
Fort Capital Partners is lead financial advisor and Gowlings WLG is serving as legal advisor to Horizon, while Cormark Securities is also acting as financial advisor.
Under the agreement terms, the 44-year-old precious metals streaming and royalty company will acquire Sandstorm’s issued share capital in exchange for Royal Gold shares at an exchange ratio of 0.0625.
The exchange ratio implies a premium of 21% based on the 20-day volume-weighted average price (VWAP) and 17% based on the closing price of Sandstorm shares on the New York Stock Exchange (NYSE) on 3 July 2025.
Sandstorm CEO Nolan Watson says the deal marks the beginning of an exciting new chapter for the company, which “over the past 15 years we’ve built a company that has not only delivered consistent growth and value but has helped shape the royalty sector through innovation”.
The suitor will also acquire Horizon in exchange for cash of C$2 per share. The price per Horizon share implies a premium of 85% to the 20-day VWAP and 72% to the closing price of Horizon shares on the TSX-V on 4 July.
Horizon Erfan Kazemi CEO says the significant cash premium to Horizon’s valuation is indicative of the value that underlies the company’s asset base.
Meanwhile, Royal Gold CEO Bill Heissenbuttel says the transactions are expected to add significantly to Royal Gold’s diversified portfolio of precious metal stream and royalty interests.
Heissenbuttel says the acquisitions fit the company’s strategic goal of acquiring high-quality and long-life precious metals assets in mining-friendly jurisdictions.
“Upon completion of these transactions, Royal Gold will remain firmly positioned as a leading North American precious metal streaming and royalty company,” the CEO adds.
“Royal Gold has a 40-plus year history of consistently executing a strategy of disciplined growth in gold, and the addition of the Sandstorm and Horizon assets will create a global portfolio of precious metals interests that is unmatched in terms of asset diversification, development and organic growth potential, and exploration optionality.
“These characteristics will position Royal Gold as the go-to vehicle for investors seeking precious metals exposure in the US marketplace, and we welcome Sandstorm shareholders to participate in the formation of the premier growth company in our sector.”
Write to Adam Orlando at Mining.com.au
Images: iStock
