The Competition Commission has approved TSX-listed financing firm Sandstorm Royalties’ proposed acquisition of fellow-listed Nomad Royalty Company.
Sandstorm is active as a custom financing firm to global gold, silver and copper mining companies through royalty and stream metal purchase agreements.
Sandstorm has a portfolio of 239 mining assets, including 29 producing mines in North America, South America, Africa, Asia and Australia.
In South Africa, Sandstorm has three mining assets, with one being a producing asset.
Nomad is controlled by Orion Finance Fund II, with institutional investors and public shareholders holding minority shares.
In turn, Nomad controls five firms globally, which altogether form a custom financing firm to global gold and silver mining companies through stream and royalty agreements.
The group’s portfolio comprises 22 royalty, stream and other assets, of which eight are producing mines. In South Africa, the group has one producing asset – Blyvoor – and one non-producing stream mining asset.
Sandstorm earlier this year announced the intended acquisition of Nomad to fortify its focus on gold, silver and copper exposure. The company will buy the issued and outstanding shares of Nomad for an implied equity value of about $590-million.
Nomad’s portfolio comprises 91% precious metals and nearly 50% producing assets.
Upon completion, Nomad shareholders will maintain meaningful ownership in Sandstorm’s portfolio of assets, holding 28% of the company.
Shareholders of Nomad will receive 1.21 common shares for each Nomad share held, implying a value of about C$11.57 a Nomad share.