Nomad Royalty (TSX:NSR) Company Ltd announced that it has agreed to be acquired by Sandstorm Gold Ltd (TSX:SAND) in an all-stock transaction valued at about C$755 million.
The gold & silver royalty company said its shareholders will receive 1.21 common shares of Sandstorm for each Nomad Royalty (TSX:NSR) share held, which represents a premium of about 34% based on the 20-day volume-weighted average prices of both companies.
“Today's transaction builds on our vision to create a pure-play, highly diversified, cash-flow focused royalty & streaming company with peer-leading growth,” Nomad Royalty (TSX:NSR) CEO Vincent Metcalfe said in a statement.
READ: Nomad Royalty Company reports preliminary revenue attributable to company of US$12.7 million in first quarter
“Catalyzing the creation of the next large royalty company has always been our objective,” Metcalfe added.
Nomad noted the transaction is also expected to benefit its shareholders by giving them exposure to Sandstorm's 260 streams and royalties, as well as improved share-trading liquidity and Sandstorm's quarterly dividend.
The transaction, which is expected to close in the second half of 2022, is subject to Nomad and Sandstorm shareholder approvals as well as approval from the TSX and the New York Stock Exchange, the Superior Court of Québec and the Canadian Competition Bureau, according to the company.
Nomad Royalty Company is a gold & silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine.
Nomad owns a portfolio of 22 royalty, stream, and gold loan assets, of which eight are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold & silver streams and royalties.
Contact Sean at sean@proactiveinvestors.com