Royal Gold to Acquire Sandstorm Gold and Horizon Copper in $3.7 Billion Deal

SEATTLE (Scrap Monster): Royal Gold, Inc. reached agreements to acquire Sandstorm Gold Ltd. and Horizon Copper Corp. 

As stipulated in the agreement with Sandstorm, Royal Gold will purchase all of Sandstorm's issued shares in return for Royal Gold shares at a ratio of 0.0625 Royal Gold common shares for every Sandstorm common share. An estimated $3.5 billion is the deal equity value.

Meanwhile, the deal with Horizon stipulates that Royal Gold will purchase all of Horizon's issued share capital for C$2.00 per share. It represents a roughly $196 million transaction equity value. 

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By adding 40 more producing assets to its portfolio, the aforementioned transactions are anticipated to greatly enhance Royal Gold's already exceptional and varied holdings. Additionally, it will strengthen the business's standing as a top streaming and royalties provider in North America with an emphasis on gold.

After the transactions are finalized, Sandstorm shareholders will own roughly 23% of the merged business, while Royal Gold shareholders would possess roughly 77%.

The purchases are consistent with Royal Gold's strategic objective of obtaining long-lived, high-quality precious metals assets in mining-friendly jurisdictions, according to Bill Heissenbuttel, the company's president and CEO.