12:31 PM EDT, 07/07/2025 (MT Newswires) -- (Updates shares.)

Sandstorm Gold ( SAND ) on Monday said it signed a definitive agreement to be acquired by Royal Gold ( RGLD ) in a US$3.5 billion deal.

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

Under the terms, Sandstorm shareholders will receive 0.0625 of a Royal Gold ( RGLD ) share for each Sandstorm share held, implying a 21% premium to Sandstorm's 20-day volume-weighted average price on the New York Stock Exchange.

"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 Sanstorm chief executive Nolan Watson.

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

Concurrent with the transaction, Royal Gold ( RGLD ) 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, chief executive of Royal Gold ( RGLD ). "Upon completion of these transactions, Royal Gold ( RGLD ) 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.

Sandstorm shares were last seen up $0.82 to $13.97 on the Toronto Stock Exchange, Horizon Copper ( HNCUF ) was up $0.78 to $1.94 on the TSX Venture Exchange.

Price: 14.00, Change: +0.84, Percent Change: +6.43