Royal Gold’s Strategic Expansion through Acquisitions of Sandstorm Gold and Horizon Copper
On July 7, 2025, Royal Gold Inc. announced a significant expansion of its operations through the acquisition of Sandstorm Gold Ltd. and Horizon Copper Corp. These transactions are set to position Royal Gold as a leading North American gold-focused streaming and royalty company, enhancing its scale, diversification, and potential for organic growth.
Sandstorm Gold Acquisition
Royal Gold has entered into a definitive arrangement agreement to acquire all issued and outstanding common shares of Sandstorm Gold Ltd. in an all-share transaction valued at approximately $3.5 billion. Sandstorm Gold, a materials company specializing in metals and mining, operates on the Toronto Stock Exchange and is based in Vancouver, Canada. The company is known for acquiring gold purchase agreements with advanced-stage development projects or operating mines, providing upfront cash payments to partners and securing the right to purchase a percentage of the gold produced at a fixed price per ounce.
As part of the transaction, Sandstorm shareholders will receive 0.0625 shares of Royal Gold for each Sandstorm share held. This acquisition is expected to significantly enhance Royal Gold’s portfolio and market presence in the gold sector.
Horizon Copper Acquisition
In parallel, Royal Gold has agreed to acquire Horizon Copper Corp. in an all-cash transaction valued at approximately US$196 million. Horizon Copper shareholders will receive C$2.00 per share, representing a substantial 72% premium to Horizon’s closing price on July 4, 2025, and an 85% premium to the 20-day volume-weighted average price (VWAP).
The acquisition of Horizon Copper is conditional upon the completion of the Sandstorm Gold transaction, with both deals requiring regulatory approvals and the approval of 66 2/3% of Horizon shareholders. Key stakeholders controlling 54% of Horizon shares have already agreed to vote in favor of the transaction.
Strategic Implications
The combined transactions are expected to close in Q4 2025, subject to regulatory approvals and other customary closing conditions. The acquisitions will bolster Royal Gold’s balance sheet and cash flow, enabling further growth and reinvestment in the precious metals sector. By integrating Sandstorm Gold’s and Horizon Copper’s assets, Royal Gold aims to reinforce its position as a leading streaming and royalty company in North America.
These strategic moves reflect Royal Gold’s commitment to expanding its footprint in the gold and copper markets, leveraging its strong financial position to capitalize on growth opportunities in the metals and mining industry.