Sandstorm Set to be Acquired by Royal Gold in $3.5 Billion Deal

Core Insights - Sandstorm Gold Ltd. (SAND) has entered into an agreement with Royal Gold, Inc. (RGLD) for the acquisition of all issued and outstanding common shares of Sandstorm at an implied value of approximately $3.5 billion [1][8] - The transaction is expected to provide Sandstorm shareholders with 0.0625 shares of Royal Gold for each Sandstorm share, representing a 21% premium to Sandstorm's 20-day volume-weighted average price as of July 3, 2025 [2][3][8] - The merger aims to enhance portfolio maturity and diversification, allowing Sandstorm shareholders to participate in a larger, diversified precious metals streaming and royalty company [3][4][8] Transaction Details - The acquisition is part of a broader strategy by Sandstorm to deliver consistent growth and value to its shareholders [2] - Royal Gold will benefit from Sandstorm's high-quality, long-life precious metals assets located in mining-friendly jurisdictions [4] - The transaction is anticipated to close in the fourth quarter of 2025, pending requisite approvals, leading to the delisting of Sandstorm and Horizon stocks from the TSX, NYSE, and TSX-V [4] Market Performance - Sandstorm's stock has increased by 85.3% over the past year, outperforming the industry average growth of 49.5% [6] - The current Zacks Rank for Sandstorm is 3 (Hold), indicating a neutral outlook [7]