08:14 AM EDT, 07/07/2025 (MT Newswires) -- Sandstorm Gold ( SAND ) said Monday that it signed a definitive agreement to be acquired by Royal Gold in a US$3.5 billion deal.

The transaction is expected to make Royal Gold the world's most diversified, large-scale precious metals streaming and royalty company.

"This transaction rewards Sandstorm shareholders in the near term while also offering a compelling opportunity to own a large-scale, world-class streaming and royalty company with continued upside potential," said Nolan Watson, president and CEO of Sandstorm.

Under the terms, Sandstorm shareholders will receive 0.0625 of a Royal Gold share for each Sandstorm share held, implying a 21% premium to Sandstorm's 20-day volume-weighted average price on the NYSE. Sandstorm's share price surged 10% at last look to US$10.59 in NYSE pre-market trading following the news.

Upon closing, existing Royal Gold shareholders will own about 77% of Royal Gold while existing Sandstorm shareholders will own 23%.

Concurrent with the transaction, Royal Gold entered a definitive agreement to acquire Horizon Copper ( HNCUF ) for US$196 million. Horizon Copper ( HNCUF ) shareholders will receive C$2.00 for each Horizon share held, implying an 85% premium to the company's 20-day VWAP on the TSXV.

"The acquisitions of Sandstorm and Horizon Copper ( HNCUF ) fit our strategic goal of acquiring high-quality and long-life precious metals assets in mining-friendly jurisdictions," said Bill Heissenbuttel, president and CEO of Royal Gold. "Upon completion of these transactions, Royal Gold will remain firmly positioned as a leading North American precious metal streaming and royalty company."

The transactions are expected to close in the fourth quarter.