SSR Mining commits to extending Seabee mine life with acquisition of Taiga Gold

SSR Mining (TSX: SSRM; NASDAQ: SSRM) has signed a definitive agreement to acquire all of the outstanding common shares of Taiga Gold (CSE: TGC), in a move that will greatly expand its presence in Saskatchewan.

SSR Mining is currently the only gold producer in the province, operating the Seabee underground mine about 125 km northeast of the town of La Ronge. The company is also exploring for gold at the Amisk property located on the Flin Flon greenstone belt.

By acquiring Taiga, SSR will add five new properties (for a total of 34,569 hectares) to its Saskatchewan portfolio, providing new exploration targets stretching south from the Seabee mine to the Amisk property.

The deal will also consolidate a 100% interest in the Fisher property contiguous to the Seabee mine, currently operated under a joint venture between SSR (80%) and Taiga (20%).

Under the agreement, Taiga shareholders will receive $0.265 per common share in cash, representing a 36% premium to the stock’s closing price on December 1. This implies an equity value of about $27 million (US$21 million) on a fully diluted in-the-money basis.

The transaction will also eliminate a 2.5% net smelter return (NSR) royalty covering the majority of the Fisher property, thus unencumbering the asset from future payments.

According to SSR, the Fisher property can provide potential ore sources to extend the operating life of its Seabee mine, particularly given the excess capacity at the Seabee mill and the recently completed tailings facility expansion, which provides capacity through 2031 at current production levels.

Highlights from exploration results at Fisher released in September included 22.99 grams gold per tonne over 1.46 metres at the Mac North target and 10.03 grams gold per tonne over 2.5 metres at the Yin target.

“The acquisition of Taiga Gold reiterates our commitment to the Seabee gold mine and ongoing investment for future resource discoveries as we aim to extend Seabee’s mine life into the next decade,” Rod Antal, SSR Mining’s president and CEO, stated in a news release.

“Additionally, the acquisition of new greenfields exploration properties across the province of Saskatchewan should allow SSR Mining to build upon our regional expertise in a region we consider exceptionally prospective geologically and underexplored,” he said.

 SSR Mining has a market cap of $4.7 billion.