Royal Gold is looking to expand its scale and diversification by acquiring Sandstorm Gold for $3.5 billion, expanding its gold production by nearly one-quarter. Through the merger, Royal Gold expects to create a large-scale precious-metals streaming-and-royalty company with an Americas-focused portfolio of 393 royalties and streams.

Sandstorm Gold Ltd. (NYSE:SAND) saw its stock rise by 7% on Monday following news that Royal Gold Inc. (NASDAQ:RGLD) will acquire both Sandstorm and Horizon Copper, in a major consolidation move aimed at expanding Royal Gold’s footprint in the North American gold streaming and royalty sector.

Royal Gold Inc. agreed to buy Sandstorm Gold Ltd. in an all-stock deal valuing the mining royalty company at about $3.5 billion, building a bigger position in the industry as precious metals surge.