Sandstorm Gold Ltd. signed a letter of intent with Royalty North Partners Ltd. (RNP) for a Reverse Takeover (RTO), under which RNP would acquire Sandstorm's non-royalty assets, including a 30% interest in the Hod Maden project. In exchange, Sandstorm received a US$200 million gold stream on Hod Maden, equity, and a US$95 million debenture. This move repositions Sandstorm as a pure-play streaming and royalty company, retaining long-term exposure to Hod Maden's potential growth. The transaction, transforming Hod Maden interest into a gold stream, reflects Sandstorm's strategy to streamline operations and unlock hidden value in its portfolio.

Post-RTO, RNP will be renamed Horizon Copper Corp, becoming a strategic partner for Sandstorm, focusing on copper projects and allowing collaborative acquisitions. The deal terms include Sandstorm's 34% equity interest in Horizon Copper and a debenture with a 10-year term and LIBOR plus 2% interest rate. The transaction is expected to close in the second half of 2022, subject to conditions like TSX-V acceptance and RNP shareholder approval. This partnership opens opportunities for both entities in precious metal by-product streams from high-quality copper assets.