Royal Gold has announced plans to acquire Sandstorm Gold Royalties and Horizon Copper for a total of around $3.7bn, combining the entities into a major global streaming and royalty company.
The transaction involving Sandstorm Gold is valued at approximately $3.5bn. Royal Gold has agreed to acquire all outstanding common shares of Sandstorm Gold in an all-share deal.
Shareholders of Sandstorm Gold will receive 0.0625 shares of Royal Gold for each share they hold. This represents a 21% premium over the 20-day volume-weighted average price and a 17% premium over the closing price on the New York Stock Exchange as of 3 July 2025.
Simultaneously, Royal Gold has entered into an agreement to acquire Horizon Copper in an all-cash transaction valued at around $196m.
Horizon Copper shareholders will receive C$2 per share, marking an 85% premium to the 20-day volume-weighted average price and a 72% premium over its closing price on the TSX Venture Exchange as of 4 July 2025.
Upon finalisation of these transactions, which is expected in Q4 2025 pending regulatory and shareholder approvals, Royal Gold will emerge as a consolidated entity under its existing name.
The enlarged company will have a diversified portfolio comprising 393 streams and royalties focused mainly on the Americas, with 80 generating cash flow and additional assets under development.
The merger aims to enhance shareholder value by offering exposure to a larger-scale company with increased liquidity and institutional investor access.
Royal Gold president and CEO Bill Heissenbuttel said: “The acquisitions of Sandstorm and Horizon Copper 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 anticipates that post-transaction, it will maintain its focus on precious metals, with projections indicating that approximately 87% of its revenue mix will stem from precious metals in 2025. The organisational synergy from integrating Sandstorm’s and Horizon’s assets is expected to contribute to financial robustness and strategic growth.
In light of the mergers’ completion, Sandstorm Gold’s and Horizon Copper’s shares are anticipated to be delisted from their respective stock exchanges. Additionally, both companies are expected to cease being reporting issuers under Canadian and US securities laws.
