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 $100 million cash payment to be paid on closing of the Transaction. 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 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. 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. 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.
A termination fee of $11 million is payable by SSR Mining.