### Major Merger in Precious Metals: Royal Gold Acquires Sandstorm Gold for $3.5 Billion In a significant move within the mining sector, Royal Gold Inc. has announced its acquisition of Sandstorm Gold Ltd. for approximately $3.5 billion. This all-stock transaction offers Sandstorm shareholders a 21% premium based on the 20-day volume-weighted average price of Sandstorm shares as of July 3, 2025. The merger is expected to create a leading entity in the streaming and royalty industry, enhancing Royal Gold's portfolio and production capabilities. Additionally, Royal Gold will also acquire Horizon Copper for $196 million, further solidifying its market position. The combined entity will boast a diverse portfolio of assets, significantly increasing production and revenue from precious metals, particularly gold [https://www.insidermonkey.com/blog/sandstorm-sand-rallies-6-3-on-3-5-billion-merger-with-royal-gold-1564834][https://www.investing.com/news/analyst-ratings/hc-wainwright-reiterates-buy-rating-on-sandstorm-gold-stock-amid-royal-gold-deal-93CH-4126287]. ### Structure of the Merger and Its Implications 1. **Details of the Acquisition**: - Royal Gold will acquire Sandstorm Gold in an all-stock deal valued at $3.5 billion. - Sandstorm shareholders will receive 0.0625 of a Royal Gold common share for each Sandstorm share held, reflecting a 21% premium [https://www.seekingalpha.com/news/4465528-royal-gold-to-buy-sandstorm-gold-horizon-copper-for-more-than-35b]. 2. **Horizon Copper Acquisition**: - Alongside Sandstorm, Royal Gold will purchase Horizon Copper for $196 million in cash [https://www.finanzen.net/nachricht/aktien/royal-gold-to-acquire-horizon-copper-for-c-2-00-per-share-14609157]. 3. **Market Reactions**: - Following the announcement, Sandstorm's stock rallied by 6.3%, indicating positive investor sentiment towards the merger [https://www.insidermonkey.com/blog/sandstorm-sand-rallies-6-3-on-3-5-billion-merger-with-royal-gold-1564834]. 4. **Strategic Benefits**: - The merger is expected to enhance Royal Gold's production by 26% and expand its asset base significantly, with a total of 80 assets post-merger [https://www.mining.com/royal-gold-to-acquire-sandstorm-horizon-in-3-7b-deal]. ### Supporting Evidence and Data - **Financial Overview**: - **Total Deal Value**: $3.5 billion for Sandstorm and $196 million for Horizon Copper. - **Premium Offered**: 21% based on the 20-day volume-weighted average price of Sandstorm shares [https://www.nsenergybusiness.com/news/royal-gold-to-acquire-sandstorm-gold-and-horizon-copper-for-3-7bn]. - **Production Growth**: - The merger is projected to boost Royal Gold's production by **26%**, significantly increasing its revenue from precious metals, with gold expected to contribute about **75%** of total revenue [https://www.stocktitan.net/news/SAND/royal-gold-to-acquire-sandstorm-gold-and-horizon-copper-and-ed4x1ufgxw2i.html]. ### Conclusion: A Transformative Move for Royal Gold The acquisition of Sandstorm Gold and Horizon Copper marks a transformative step for Royal Gold, positioning it as a dominant player in the precious metals streaming and royalty sector. 1. **Enhanced Portfolio**: The merger will create a diversified portfolio with 80 assets, increasing production capabilities and revenue streams. 2. **Market Confidence**: The positive market reaction, evidenced by Sandstorm's stock rally, reflects investor confidence in the strategic direction of the combined entity. 3. **Future Outlook**: With a projected 26% increase in production, Royal Gold is set to strengthen its market position and drive future growth in the precious metals industry [https://www.mining-technology.com/news/royal-gold-acquire-sandstorm-horizon-deals][https://www.benzinga.com/m-a/25/07/46275779/royal-gold-acquires-sandstorm-and-horizon-in-bold-expansion-move].