Royal Gold Inc. (NASDAQ:RGLD) announced that it has entered into agreements to acquire Sandstorm Gold Ltd. (TSX:SSL; NYSE:SAND) as well as Horizon Copper Corp. (TSXV:HCU; OTCQB:HNCUF).
The terms of the agreement indicated that Royal Gold will acquire 100% of the issued share capital of Sandstorm in exchange for Royal Gold shares using an exchange ratio of 0.0625 common shares of Royal Gold for each common share of Sandstorm, implying a premium of 21% on the 20-day volume-weighted average price (VWAP) and 17% on the closing price of Sandstorm shares on the NYSE on 3 July 2025. This represents a transaction equity value of approximately US$3.5B.
The terms of the deal with Horizon will provide Royal Gold with 100% of the issued share capital of Horizon in exchange for cash of C$2.00/share. This price per share of Horizon implies a premium of 85% to the 20-day VWAP and 72% on the closing price of Horizon shares on the TSXV dated 4 July 2025. This reflects a transaction equity value of approximately US$196M.
Bill Heissenbuttel, President and CEO of Royal Gold commented, “I am pleased to announce these acquisitions, which fit our 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. Royal Gold has a 40+ 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 U.S. marketplace, and we welcome Sandstorm shareholders to participate in the formation of the premier growth company in our sector.”
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