Royal Gold to Acquire Horizon Copper at C$2.00 Per Share, Bringing Major Premium to Investors

Royal Gold’s Strategic Acquisition of Horizon Copper



Royal Gold, Inc. has recently announced an agreement to acquire Horizon Copper Corp., a significant move poised to reshape the copper mining sector. This acquisition involves purchasing all outstanding common shares of Horizon Copper for C$2.00 each, reflecting an impressive premium of 85% over the recent 20-day volume weighted average price (VWAP). The total value of this transaction amounts to approximately US$196 million. This deal not only signifies a strategic goal for Royal Gold but also presents strong financial returns for Horizon's shareholders.

The Details of the Deal


The arrangement details were disclosed on July 7, 2025, where Horizon Copper, listed on TSX Venture Exchange (HCU), became a focal point of this acquisition discussion. The deal is particularly lucrative for the shareholders as it values the shares at a steep 72% over the closing price observed on July 4, 2025. In addition, it ensures immediate liquidity via an all-cash offer, removing uncertainties surrounding financing conditions, providing a clear pathway for investors to realize their returns quickly.

Erfan Kazemi, President and CEO of Horizon Copper, expressed his satisfaction with the arrangement, underscoring that since its inception in 2022, Horizon has positioned itself uniquely within the market. Its strong performance, supported by cash flows from projects like the Antamina and collaborations at Hod Maden and Oyu Tolgoi, has cemented its status as a top-performing junior copper stock, outperforming major benchmarks in the mining sector by over 50%.

Supporting Transactions


In conjunction with acquiring Horizon, Royal Gold has also made an arrangement to acquire Sandstorm Gold, valued at approximately US$3.5 billion. Both transactions are interconnected, emphasizing Royal Gold’s commitment to enhancing its portfolio through high-quality and long-life assets. The strategic rationality behind these acquisitions hints at a larger vision of extending their influence over the market, diversifying their investment holdings and fueling future growth.

Bill Heissenbuttel, President and CEO of Royal Gold, praised the acquisition of Horizon, stating it aligns perfectly with their strategic framework, focusing on acquiring top-notch royalty and streaming interests that bolster their global portfolio.

Transaction Conditions and Approvals


The acquisition of Horizon Copper will be executed through a court-approved plan, necessitating a substantial shareholder approval of at least 66 2/3% at a special meeting. This meeting will allow shareholders to express their views on the sought-after transaction which grants robust voting support from major stakeholders controlling about 54% of the shares. The implications of the deal extend beyond shareholder approval to include compliance with regulatory mandates such as conditional acceptances by the TSX-V and reviews under the Canadian Competition Act.

Financial and Legal Counseling in the Background


Royal Gold has engaged Scotiabank as their financial advisor, while McCarthy Tétrault LLP provides legal guidance. For Horizon Copper, Fort Capital Partners and Cormark Securities Inc. were involved in evaluating the fairness of the transaction, assisting in establishing its viability. The Board of Directors of Horizon Copper supports the sale, urging securityholders to endorse the acquisition, emphasizing its long-term benefits.

Conclusion: Anticipating Future Developments


The Horizon acquisition is projected to finalize in the latter part of 2025, contingent upon receiving necessary approvals and completing the Sandstorm transaction. Investors and market observers will be keenly watching as these transactions unfold, potentially heralding a new era of growth and strategic development in the mining sector. Horizon Copper is set to be delisted from the TSX-V, ending its journey as a reporting issuer under the Canadian securities laws, but not without leaving a significant mark in its wake.

This strategic acquisition not only highlights Royal Gold’s intent to bolster its asset base but also reflects an optimistic outlook for the future of copper mining with Horizon's robust portfolio at the forefront. Stakeholders are encouraged to remain engaged as further details emerge through the management’s circulars leading up to the anticipated shareholder meetings.

Topics Financial Services & Investing)

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