Story by Fiona Craig • 2d • 2 min read
Sandstorm Gold Ltd. (NYSE:SAND) saw its stock rise by 7% on Monday following news that Royal Gold Inc. (NASDAQ:RGLD) will acquire both Sandstorm and Horizon Copper, in a major consolidation move aimed at expanding Royal Gold’s footprint in the North American gold streaming and royalty sector.
In the announced all-stock deal, Royal Gold will acquire Sandstorm for approximately $3.5 billion, offering shareholders 0.0625 Royal Gold shares per Sandstorm share—a 21% premium based on the 20-day volume-weighted average price.
In a separate agreement, Royal Gold will purchase Horizon Copper for C$2.00 per share in cash, valuing Horizon at around $196 million USD—an 85% premium over Horizon’s 20-day average.
These combined transactions will significantly expand Royal Gold’s portfolio by adding 40 new producing assets, which are projected to deliver 65,000 to 80,000 gold-equivalent ounces in 2025. That represents a 26% increase in expected production for Royal Gold based on existing guidance from all three companies.
Royal Gold CEO Bill Heissenbuttel said the mergers would cement the company’s leadership in the precious metals streaming space, highlighting that the new combined portfolio offers unparalleled diversity, organic growth potential, and exposure to exploration upside.
The newly formed entity will operate a portfolio of 80 revenue-generating assets, with no single project accounting for more than 13% of net asset value, reinforcing its balanced exposure. Precious metals will continue to dominate the company’s income, contributing roughly 87% of total revenue, with gold alone making up around 75%.
Pending regulatory and shareholder approvals, both deals are expected to close by the fourth quarter of 2025. Once finalized, existing Royal Gold shareholders will own about 77% of the merged company, with Sandstorm shareholders holding the remaining 23%.
Original Article: https://www.msn.com/en-us/money/markets/sandstorm-gold-shares-climb-after-royal-gold-announces-3-5-billion-acquisition-deal/ar-AA1I7n12?ocid=finance-verthp-feeds
