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Investing.com - H.C. Wainwright has reiterated a Buy rating and $11.75 price target on Sandstorm Gold Ltd. (NYSE:SAND) following the company’s acquisition agreement with Royal Gold (NASDAQ:RGLD). The stock has shown impressive momentum, surging over 80% year-to-date and trading near its 52-week high of $10.44.
On Monday, Sandstorm Gold announced it had entered into a definitive agreement with Royal Gold under which Royal Gold would acquire all outstanding common shares of Sandstorm in a transaction valued at approximately $3.5 billion.
According to the deal terms, Sandstorm shareholders will receive 0.0625 of a share of Royal Gold common stock for each Sandstorm share held, representing a 21% premium to the 20-day volume-weighted average price of Sandstorm common shares and a 17% premium to the closing price as of July 3, 2025.
Upon completion of the transaction, Royal Gold and Sandstorm shareholders are expected to own approximately 77% and 23% of the issued and outstanding Royal Gold shares on a fully diluted basis, respectively.
H.C. Wainwright analyst Heiko F. Ihle maintained the firm’s Buy rating and $11.75 price target on Sandstorm Gold stock following the announcement of the acquisition agreement.
In other recent news, Sandstorm Gold Ltd. has been at the center of several significant developments. The company announced record operating results for the first quarter of 2025, highlighting a period of strong performance. Although specific financial details were not disclosed, this achievement indicates robust operational success. Additionally, Sandstorm Gold is involved in a major merger, as Royal Gold plans to acquire Sandstorm and Horizon Copper in an all-stock transaction valued at approximately $3.5 billion. This merger is expected to enhance Royal Gold’s position as a leading North American gold-focused streaming and royalty company.
Furthermore, Sandstorm Gold has received favorable voting recommendations from Institutional Shareholder Services and Glass Lewis (JO:LEWJ) for its upcoming 2025 shareholder meeting, which could influence shareholder decisions. In exploration news, First Majestic Silver (NYSE:AG) Corp. discovered a significant gold-silver vein at the Santa Elena property, located within Sandstorm’s stream area of interest. This discovery allows Sandstorm to purchase 20% of the gold produced at the site. Lastly, Sandstorm Gold disclosed the outcomes of its annual shareholder meeting, covering the election of directors and approval of the company’s auditor, in compliance with SEC regulations. These developments are crucial for investors monitoring Sandstorm Gold’s strategic and financial trajectory.
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