Royal Gold is acquiring Sandstorm Gold and Horizon Copper in deals worth $3.5bn

Royal Gold is set to acquire Sandstorm Gold and Horizon Copper, strengthening its position in the market. The deals are expected to boost revenue and add 40 new assets to Royal Gold’s portfolio. The acquisitions will increase GEO production by 26% and create a diverse global portfolio of precious metals interests.

The transactions involve exchanging shares with Sandstorm shareholders at a premium, valued at approximately $3.5bn. Royal Gold will issue around 19 million common shares to Sandstorm shareholders, who will own 23% of the combined company. The Horizon Copper deal includes acquiring all issued share capital for cash at C$2 per share.

Royal Gold’s president and CEO, Bill Heissenbuttel, stated that the acquisitions will enhance the company’s growth strategy and create a unique portfolio of precious metals interests. The combined company will have 80 revenue-producing assets and a diverse mix of development and exploration projects. The transactions are expected to close in the fourth quarter of 2025.

Financial advisers like Scotiabank and Raymond James are working with Royal Gold on the deals, while legal advisers such as McCarthy Tétrault and Skadden, Arps, Slate, Meagher & Flom are involved. Sandstorm is being advised by BMO Capital Markets and other firms, while Horizon has advisors like Fort Capital Partners and Gowlings WLG. The acquisitions are part of Royal Gold’s strategic growth plan in the gold sector.

Read more at Yahoo Finance: Royal Gold to acquire Sandstorm and Horizon in deals worth $3.5bn