SSR Mining Inc. has announced the acquisition of the Cripple Creek & Victor Gold Mine from Newmont Corporation in an all-cash deal. The transaction involves $100 million in upfront consideration and up to $175 million in additional milestone-based payments. This acquisition is expected to increase SSR Mining's scale, free cash flow, and portfolio diversification, making it the third-largest U.S. gold producer.
The Cripple Creek & Victor Gold Mine is anticipated to add approximately 170,000 ounces in annual gold production to SSR Mining’s platform. Combined with Marigold, the company’s total U.S. gold production is projected to average between 300,000 * 400,000 ounces annually. The acquisition is expected to be accretive across all key metrics and to provide meaningful operating and free cash flow generation to support high-return growth initiatives across the portfolio.
SSR Mining expects the transaction to close in the first quarter of 2025, subject to satisfaction of preclosing conditions and regulatory approvals. The company will provide 2025 guidance for Cripple Creek & Victor Gold Mine following the completion of the transaction.
The Cripple Creek & Victor Gold Mine is located approximately 100 miles from SSR Mining's headquarters in Denver, Colorado. The acquisition is seen as a rare opportunity to add a high-quality producing asset in a tier-1 jurisdiction at an accretive valuation. Additionally, it is expected to ensure SSR Mining's balance sheet remains a strength of its business, with the mine projected to contribute meaningful cash flow immediately.
The press release also provides detailed geological information about the Cripple Creek deposit, including mineral reserves and resources. It highlights the benefits of the acquisition to SSR Mining shareholders and Cripple Creek & Victor stakeholders, emphasizing the commitment to health and safety, environmental stewardship, and local community relationships.
SSR Mining's financial advisor for the transaction is Scotiabank, and Stikeman Elliott LLP and Holland & Hart LLP are acting as the company's legal advisors.
SSR Mining is scheduled to host a conference call to discuss the transaction, and participants may access the call through the provided dial-in numbers. An audio replay will also be available for two weeks following the call.
Following these announcements, the company's shares moved -3.1%, and are now trading at a price of $7.42. For the full picture, make sure to review SSR Mining's 8-K report.
