Highlander Silver Corp. (CNSX:HSLV) entered into a definitive agreement to acquire San Luis Project from SSR Mining Inc. (TSX:SSRM) for $45 million on November 29, 2023. Total consideration consists of $5 million in upfront cash or $7.5 million in common shares of Highlander Silver Corp.

or it will pay under combination of both, and up to $37.5 million in contingent payments payable in cash. Pursuant to the terms of the agreement, SSR Mining will retain a 4% net smelter returns (?NSR?) royalty on the Project, which will be granted prior to the closing of the Transaction. The upfront cash component of the consideration will be paid upon closing of the Transaction and the contingent payments are expected to be received in five installments beginning with the commencement of an initial drilling program at the Project and ending on the second anniversary of commercial production from the Project.

Under the terms of the agreement, at any time until commencement of construction, half of the NSR royalty can be repurchased by Highlander Silver for $15 million in cash. On May 9, 2024 Highlander completed an offering of 20,514,222 common shares of the Company at a price of $0.45 per Share for gross proceeds of $9,231,400 and The proceeds of the Offering will be put towards finalization of the acquisition. The closing of the transaction is expected to occur in the 2nd quarter of 2024, and is subject to the receipt of any required regulatory approvals and certain customary closing conditions for transactions of this nature.

The Transaction is expected to be accretive to SSR Mining on a NAV per share basis, based on street consensus estimates. As of March 14, 2024, The closing of the Transaction is subject to certain conditions, including receipt of all required regulatory approvals and currently expected to occur in April 2024. As per filing on May 9, 2024, the acquisition is expected to close in May 2024.