SSR Mining Inc. has entered into a definitive purchase agreement to acquire Cripple Creek & Victor Gold Mine in Colorado, USA from Newmont Corporation for approximately $280 million.
SSR Mining Inc. (TSX:SSRM) has entered into a definitive purchase agreement to acquire Cripple Creek & Victor Gold Mine in Colorado, USA from Newmont Corporation (NYSE:NEM) for approximately $280 million on December 6, 2024. Consideration for the acquisition of CC&V is comprised of: A $108.7 million cash payment to be paid on closing of the Transaction. Cash consideration is comprised of $100 million in upfront cash and an $8.7 million working capital adjustment. Up to $175 million of milestone-based payments in cash, of which: $87.5 million will be payable upon final approval of the application to amend the CC&V Cresson Permit and Up to $87.5 million will be payable upon obtaining regulatory relief relating to flow-related permitting requirements for the Carlton Tunnel, including steps taken to achieve the highest feasible alternative in relation to Carlton Tunnel water flow. The deferred payments meet the definition of a derivative asset and are included as contingent consideration in Derivative assets. The upfront payment is expected to be funded from the Company?s current cash position. Total consideration expected to be funded from the Company?s existing sources of liquidity totaling over $800 million. A termination fee of $11 million is payable by SSR Mining.
The transaction is subject to satisfaction of preclosing conditions and the receipt of all required regulatory approvals. The Transaction is expected to close in the first quarter of 2025. The transaction is subject to Hart-Scott-Rodino Act review in the United States. Transaction expected to be accretive to SSR Mining?s key per share metrics including Net Asset Value, gold production, gold Mineral Reserves and Resources, operating cash flow and free cash flow. Scotiabank is acting as financial advisor to SSR Mining and provided a fairness opinion to the Board of Directors of SSR Mining.
D?Arcy Nordick of Stikeman Elliott LLP and Claire Rosston, Stu Knight of Holland & Hart LLP are acting as SSR Mining?s legal advisors. BMO Capital Markets Corp. acted as financial advisor for Newmont Corporation. Bruce D. Stocks, Mark C. Bussey and Nate Goergen of Davis Graham & Stubbs LLP acted as legal advisor for Newmont Corporation.
SSR Mining Inc. is a precious metals mining company with four producing assets located in the United States of America (USA), Turkey, Canada, and Argentina, combined with a global pipeline of development and exploration assets in the USA, Turkey, Mexico, and Canada. Its four operating assets produce more than 700,000 gold-equivalent ounces annually. The Company's gold and silver production is sourced from its Copler Gold Mine (Copler) in Erzincan, Turkey, Marigold mine (Marigold) in Nevada, United States, Seabee Gold Operation (Seabee) in Saskatchewan, Canada and Puna Operations (Puna) in Jujuy, Argentina. The Company's growth and development pipeline includes Cakmaktepe Extension and Copper Hill in Turkey, New Millennium, Trenton Canyon and Buffalo Valley in Nevada, and the Fisher and Amisk properties in Saskatchewan, along with a number of earlier-stage opportunities globally. Amisk property is 39,880 hectares with extensive Proterozoic-volcano-sedimentary rock assemblages.
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SSR Mining Inc. has entered into a definitive purchase agreement to acquire Cripple Creek & Victor Gold Mine in Colorado, USA from Newmont Corporation for approximately $280 million.
