SSR Mining (NASDAQ: SSRM; TSX: SSRM; ASX: SSR) will buy the Cripple Creek & Victor (CC&V) gold mine in Colorado from Newmont (NYSE: NEM, TSX: NGT) for US$275 million.
It will add 170,000 oz of gold. of gold annually to become the third-largest U.S. gold miner.
The deal announced Friday includes a US$100 million cash payment and up to US$175 million in milestone payments. Of this, US$87.5 million will be payable upon approval of an amended permit for the CC&V Cresson mine, filed by Newmont earlier this year. The permit will extend the mine’s life by adding leach pad capacity and making operational adjustments. Another US$87.5 million depends on easing the Carlton Tunnel permit rules.
SSR and Newmont will share closure costs at CC&V. If they exceed US$500 million, SSR will pay 10% of the extra costs. Newmont will cover the rest.
The company expects to close the transaction in the first quarter of 2025.
When combined with the Marigold mine, SSR expects its total U.S. gold production to average between 300,000 and 400,000 oz. per year.
The large-scale open-pit mine has been active for more than 30 years and has gold mineral reserves of about 1.3 million oz., plus an additional 1.6 million oz. of measured and indicated mineral resources (excluding reserves) and 300,000 oz. inferred.
CC&V is about 161 km from the company’s headquarters in Denver.
“The acquisition of the CC&V represents a rare opportunity to add a high-quality producing asset in a Tier-1 jurisdiction at an accretive valuation,” SSR executive chairman Rod Antal said.
At $9.00 apiece, shares of SSR were up 5.3%, or 46¢, on Friday afternoon in Toronto. The miner has a market capitalization of $1.8 billion.
Newmont divestments
The deal is part of Newmont’s ongoing divestment program to streamline its portfolio.
Last week, the miner announced selling its Éléonore mine in Quebec to London-based miner Dhilmar for $795 million in cash.
The world’s largest gold miner also announced the sale of its Musselwhite gold mine in Ontario to Orla Mining (TSX: OLA) for $850 million.
Newmont in September sold its Telfer mine, a 70% stake in the Havieron project and other related interests in Australia’s Paterson region to Greatland Gold (AIM: GGP).
Shares of Newmont were flat in afternoon trading in New York at US$41.10. The miner has a market capitalization of US$47 billion.
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