Royal Gold has entered agreements to acquire Sandstorm Gold and Horizon Copper, reinforcing its position as a leading North American gold-focused streaming and royalty company.
The transactions are expected to significantly enhance Royal Gold’s diversified portfolio of precious metal streams and royalty interests, with anticipated immediate and meaningful revenue growth.
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Under the agreement with Sandstorm, Royal Gold will exchange shares at a ratio of 0.0625 of its common shares for each Sandstorm share, representing a 21% premium based on the 20-day volume-weighted average price (VWAP) and a 17% premium on the closing price as of 3 July 2025.
This exchange reflects a transaction equity value of approximately $3.5bn.
Royal Gold expects to issue approximately 19 million common shares to Sandstorm shareholders, who will then own 23% of the issued and outstanding common shares of Royal Gold on a fully diluted basis.
The transaction will be completed through a court-approved plan of arrangement, with Sandstorm shareholders receiving Royal Gold shares, implying a 21% premium based on the 20-day VWAP.
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By GlobalDataUpon completion, Royal Gold shareholders and Sandstorm shareholders will own approximately 77% and 23%, respectively, of the combined company.
The Horizon Copper transaction involves Royal Gold acquiring all issued share capital for cash at C$2 ($1.46) per share, indicating an 85% premium over the 20-day VWAP and a 72% premium on the closing price as of 4 July 2025, with a transaction equity value of approximately $196m.
Royal Gold president and CEO Bill Heissenbuttel said: “Royal Gold has a 40+ year history of consistently executing a strategy of disciplined growth in gold, and 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.”
The acquisitions are expected to add 40 new producing assets to Royal Gold’s portfolio, which will contribute between 65,000 and 80,000 gold equivalent ounces (GEOs) in 2025, increasing GEO production by roughly 26%.
The pro forma revenue mix is projected to be 87% from precious metals, with gold accounting for approximately 75% of total revenue.
The combined company will boast a diversified portfolio with 80 revenue-producing assets, and no single asset is expected to account for more than 13% of net asset value (NAV).
The pro forma portfolio will also include 47 development assets, such as Platreef, MARA, and Hod Maden, and a further 266 assets in the evaluation and exploration stages.
The transactions are expected to close in the fourth quarter of 2025. Both transactions will require approval from shareholders and the Supreme Court of British Columbia, with additional regulatory clearances or approvals.
Scotiabank and Raymond James are serving as financial advisers to Royal Gold while McCarthy Tétrault, Skadden, Arps, Slate, Meagher & Flom acted as legal adviser, along with Richards, Layton & Finger.
BMO Capital Markets, Cassels Brock & Blackwell, Crowell & Moring, National Bank of Canada, and CIBC World Markets are advising Sandstorm.
Fort Capital Partners and Gowlings WLG are advising Horizon, with Cormark Securities also acting as a financial adviser.
In February 2024, Royal Gold signed an agreement with Centerra Gold to extend the life of the Mount Milligan Mine to 2035, involving a cost support agreement with immediate financial benefits and potential for a longer mine lifespan, including $24.5m (C$33.17m) in cash and 50,000oz of gold.
