SSR Mining to Acquire Cripple Creek & Victor Gold Mine in $275 Million Deal

SSR Mining Inc., a British Columbia corporation, has entered into a Share Purchase Agreement with Newmont Corporation to acquire the Cripple Creek & Victor Gold Mine (CC&V) in Colorado. The all-cash transaction, with an upfront payment of $100 million and additional milestone-based payments of up to $175 million, aims to expand SSR Mining’s scale, free cash flow, and asset portfolio.

As per the Purchase Agreement, the acquisition is structured with milestone-based payments. The agreement includes provisions for an upfront cash payment, contingent payments based on achieving specified milestones, and responsibilities for incremental closure costs at CC&V in certain scenarios.

The Purchase Agreement includes representations, warranties, and indemnification obligations by all parties involved. The completion of the transaction is subject to customary closing conditions, including antitrust approvals. SSR Mining anticipates closing the transaction in the first quarter of 2025, with termination clauses for both parties if the deal isn’t finalized by March 31, 2025.

An associated news release highlights the strategic rationale for the acquisition, emphasizing the addition of approximately 170,000 ounces of annual gold production from CC&V to SSR Mining’s operations. The purchase is expected to be accretive across key metrics, preserving balance sheet strength with staged payments. The acquisition aligns with SSR Mining’s focus on generating free cash flow and diversifying its portfolio through long-lived, high-return assets.

SSR Mining’s strategic expansion reflects its commitment to enhancing shareholder value and advancing growth initiatives. The acquisition is seen as an opportunity for the company to establish a leading presence in the U.S. gold production landscape, leveraging its operational expertise and the potential for upside at CC&V.

Although forward-looking information indicates optimism regarding the transaction and its potential benefits, investors are cautioned of the inherent risks and uncertainties that may affect actual outcomes. SSR Mining aims to provide further guidance on CC&V post-transaction closure, reinforcing its commitment to operational excellence, environmental stewardship, and community relationships.

Advisors and legal counsel are assisting SSR Mining in navigating the transaction intricacies, with Scotiabank providing financial advisory services and legal advisors overseeing legal aspects. The company is set to hold a conference call to discuss the acquisition in more detail on December 6, 2024.

In summary, the acquisition of the CC&V Gold Mine signifies SSR Mining’s strategic growth trajectory, anchoring its position as a prominent player in the U.S. gold mining sector.

Signed,
SSR Mining Editorial Team

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read SSR Mining’s 8K filing here.

SSR Mining Company Profile

SSR Mining Inc, together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina.