Concurrent to the deal, Royal Gold also agreed to acquire all of the shares of Horizon Copper, which trades on Toronto’s venture exchange, for $196 million in cash. Royal Gold said that the combination of Sandstorm and Horizon will convert a greater proportion of stream and royalty earnings into equity free cash flow.

The Sandstorm deal is a share swap that values Sandstorm at about $3.5 billion, the companies said. Meanwhile, Royal Gold will buy Horizon for C$2 a share in a C$267.5 million (S196 million) all-cash acquisition. Royal Gold stock was slumping 8.5% to $164.62 following the announcement.