Royal Gold (RGLD) has announced its intention to acquire Canada's Sandstorm Gold (SAND) for $3.50 billion U.S.
Under terms of the all-stock deal, Colorado-based Royal Gold will issue 0.0625 shares for each Sandstorm share that it does not already own.
Royal Gold said that upon completion of the transactions, its shareholders will own 77% and Sandstorm shareholders will own 23% of the newly combined company.
The deal represents a 21% premium to the 20-day average share price of Sandstorm Gold, said the companies in a news release. Sandstorm Gold is based in Vancouver, British Columbia.
The deal is expected to close in the fourth quarter of 2025.
At the same time, Royal Gold will acquire Canadian junior miner Horizon Copper (HCU) in an all-cash transaction valued at $196 million U.S.
The combined entity will create the world's most diversified, large-scale precious metals royalty company, with 393 royalties, including 80 cash-flowing assets.
The revenue mix of the combined companies is expected to be 87% precious metals, with 75% from gold, said Royal Gold in a news release.
The acquisition comes with the price of gold not far from its all-time high of just over $3,500 U.S. per ounce. Gold is currently trading at $3,311.10 U.S. per ounce.
The stock of Royal Gold is down 4% on news of these acquisitions. Prior to today (July 7), the company’s share price had risen 34% this year to trade at $179.82 U.S. a share.
