09:17 AM EDT, 07/07/2025 (MT Newswires) -- Royal Gold ( RGLD ) on Monday agreed to acquire Canadian mining companies Sandstorm Gold ( SAND ) and Horizon Copper in separate deals, as the firm looks to bolster its precious metal stream and royalty interests portfolio.

Sandstorm shareholders will receive 0.0625 shares of Royal Gold ( RGLD ) for each share they own in the company, representing a premium of 17% to its closing share price on July 3. The all-stock transaction has an equity value of about $3.5 billion, the companies said in separate statements.

Royal Gold ( RGLD ) expects to issue about 19 million shares to Sandstorm's investors, who are expected to own about 23% of Royal Gold's ( RGLD ) stock after the deal closes. Shares of Sandstorm listed on the New York Stock Exchange jumped 9.9% in premarket activity, while Royal Gold ( RGLD ) declined 3.9%.

In addition, Royal Gold ( RGLD ) will purchase all the shares of Horizon Copper, other than those owned by Sandstorm, for about $196 million. The company will pay Horizon stockholders 2 Canadian dollars ($1.5) per share under the terms of the deal.

Both transactions require approval from a majority of Sandstorm's and Horizon's shareholders, as well as clearance from regulators, among other conditions. The deals are expected to complete in the fourth quarter, following which the shares of Sandstorm and Horizon will be delisted from the New York and Toronto stock exchanges.

"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," Royal Gold ( RGLD ) Chief Executive Bill Heissenbuttel said in a statement. "These characteristics will position Royal Gold ( RGLD ) as the go-to vehicle for investors seeking precious metals exposure in the US marketplace."

Royal Gold ( RGLD ) expects the acquisitions to enhance its scale and liquidity, position it to generate valuation premiums and compete across the streaming and royalty industry. The company estimates the deals to contribute 40 additional producing assets to its portfolio and increase its gold equivalent ounce production by about 26% for 2025. It also anticipates the transactions to be immediately accretive to net asset value per share.

The agreement with Sandstorm includes termination fees of $200 million or $130 million, to be paid by Royal Gold ( RGLD ) or Sandstorm, respectively, under certain circumstances.