Uranium Royalty Corp. (UROY) will merge with Sweetwater Royalties, a company owned 92 % by Orion Resource Partners LP and the Ontario Teachers’ Pension Plan. The transaction values Sweetwater at an enterprise value of approximately US$1.9 billion, with UROY acquiring an equity stake worth about US$1.1 billion. The combined entity will be a newly formed U.S.‑domiciled parent, also named Uranium Royalty Corp., and will apply for listing on the NASDAQ Capital Market.
Sweetwater’s portfolio includes royalty interests in uranium, trona, oil and gas, renewable energy, and other critical minerals. Its land holdings span Wyoming, Utah and Colorado, with a significant position in the world’s largest trona deposits. By adding these assets, UROY will broaden its revenue base beyond uranium, gaining stable cash flows from industrial minerals while maintaining its core focus on uranium royalties.
The strategic rationale for the deal is two‑fold. First, diversification reduces UROY’s exposure to the cyclical uranium market and adds reliable, long‑life assets that generate consistent EBITDA. Second, the combined company will become the largest U.S. non‑precious‑metals royalty firm, with expanded land holdings that position it as a major U.S. public landowner. The transaction also strengthens UROY’s uranium position by increasing its royalty exposure and providing a stronger financial foundation to pursue growth in nuclear energy.
Sweetwater’s adjusted EBITDA has averaged US$74 million in each of the last two fiscal years, and the acquisition is expected to accelerate near‑term cash flows for the combined entity. The implied valuation multiples align with industry benchmarks for royalty companies, and the deal is structured to provide UROY shareholders with a premium equity stake while preserving liquidity for future investments.
"We welcome this transformational combination that will accelerate near‑term cash flows from competitive and reliable, long‑life assets located in a top‑tier jurisdiction, Wyoming, in which we have a great deal of affinity and familiarity," said Scott Melbye, CEO of UROY. He added that the deal "provides a strong financial base to allow us to fully realize and expand our uranium focus at a time of historic growth in nuclear energy." Damon Barber, CEO of Sweetwater, expressed enthusiasm, noting the "next chapter of growth with URC, where we see strong strategic alignment and a shared commitment to value creation."
Investor sentiment was mixed as analysts weighed the deal’s valuation and diversification benefits. The transaction is expected to close in the early third quarter of 2026, subject to customary closing conditions.
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