WASHINGTON (dpa-AFX) - SSR Mining Inc. (SSRM) announced on Friday that it has inked a deal to buy the Cripple Creek & Victor or CC&V Gold mine in Colorado from Newmont Corp. (NEM) for upfront cash consideration of $100 million and up to $175 million in additional milestone-based payments.
The transaction, to be closed in the first-quarter of 2025, is expected to be accretive to SSRM's key per share metrics, including net asset value, gold production, and others.
Rod Antal, executive chairman of SSR Mining, said: 'The acquisition of the Cripple Creek & Victor Gold Mine represents a rare opportunity to add a high-quality producing asset in a Tier-1 jurisdiction at an accretive valuation.'
Of the $175 million of milestone-based payment, $87.5 million will be paid upon final approval of the application to amend the CC&V Cresson Permit. This permit amendment was filed by Newmont on April 25, with the scope to extend the life of mine.
Up to $87.5 million will be paid upon obtaining regulatory relief relating to flow-related permitting requirements for the Carlton Tunnel.
CC&V is expected to add around 170,000 ounces in annual gold production to SSR Mining's platform and, combined with Marigold, the company's total U.S. gold production is expected to average between 300K to 400K ounces annually.
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