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DENVER - Royal Gold, Inc. (NASDAQ:RGLD) announced Monday it has entered into agreements to acquire Sandstorm Gold Ltd. (NYSE:SAND) and Horizon Copper Corp. (TSXV:HCU) in transactions valued at approximately $3.5 billion and $196 million, respectively. According to InvestingPro data, Horizon Copper currently has a market capitalization of $73.86 million and has demonstrated impressive revenue growth of 142% over the last twelve months.
Under the terms of the Sandstorm transaction, Royal Gold will exchange 0.0625 of its common shares for each Sandstorm share, representing a 21% premium based on the 20-day volume-weighted average price. Horizon shareholders will receive C$2.00 per share in cash, a 85% premium to the 20-day average. The deal comes as Horizon Copper has shown strong momentum, with InvestingPro reporting a 63% return over the past year and maintaining a strong overall financial health score rated as "GREAT."
The acquisitions will add 40 producing assets to Royal Gold’s portfolio, expected to contribute between 65,000 and 80,000 gold equivalent ounces in 2025. Based on current guidance, this would increase Royal Gold’s 2025 production by approximately 26%.
"Upon completion of these transactions, Royal Gold will remain firmly positioned as a leading North American precious metal streaming and royalty company," said Bill Heissenbuttel, President and CEO of Royal Gold. "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."
The combined company will have 80 revenue-producing assets with no single asset expected to account for more than 13% of net asset value. The pro forma revenue mix will be approximately 87% from precious metals, with gold contributing about 75% of total revenue. Horizon Copper brings stability to the merger with a relatively low beta of 0.75, though InvestingPro analysis indicates its current ratio of 0.69 suggests some near-term liquidity considerations.
Key assets being acquired include interests in the MARA copper-gold project in Argentina, the Hod Maden gold-copper project in Turkey, and the Platreef platinum group metals project in South Africa.
Upon completion, Royal Gold shareholders will own approximately 77% of the combined company, with Sandstorm shareholders owning the remaining 23%.
The transactions, which have been approved by the boards of all three companies, are expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.
The announcement was made in a press release statement from Royal Gold.
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