SSR Mining Expands Nevada Footprint With Roxmore Purchase

SSR Mining (TSX:SSRM,NASDAQ:SSRM) will acquire Roxmore Resources (TSX:RM) in an all-cash transaction that expands its flagship Nevada footprint and solidifies its standing as the third-largest gold producer in the US.

The deal centers on Roxmore’s Converse gold project, located just six kilometers west of SSR Mining’s Marigold Complex along Nevada's Battle Mountain-Eureka Trend.

SSR Mining expects to generate at least US$200 million in life-of-mine synergies by eliminating duplicate site administration and overhead costs.

“The acquisition of Roxmore and its Converse gold project represents a compelling opportunity to add a high-quality multi-million ounce gold resource next door to our Marigold mine at an attractive valuation,” company Executive Chairman Rod Antal said in a statement. “SSR Mining is the natural acquiror of this exciting deposit and developing an asset in close proximity to Marigold will allow for clear operating and financial efficiencies.”

Converse holds 103 million tons of Indicated resources containing 2.2 million ounces of gold, along with 218 million tons of Inferred resources containing 3.0 million ounces.

The company expects Converse to add 150,000 to 170,000 ounces of annual gold output over a mine life exceeding 10 years, with initial production targeted for 2033. Initial construction capital is projected at US$800 million to US$900 million, though no material development capital is expected until the early 2030s.

Non-core exploration properties held by Roxmore will be spun out into a newly created company funded with US$10 million in cash, owned 85.01 percent by former Roxmore shareholders and 14.99 percent by SSR Mining.

Combined with production from Marigold and its Cripple Creek and Victor mine in Colorado, SSR Mining projects its US platform will average between 350,000 and 400,000 ounces of gold annually from 2033 through 2042, with peak years exceeding 450,000 ounces.

The acquisition will be funded entirely from SSR Mining’s current balance sheet.

In March, the company bolstered its cash position by agreeing to sell its 80 percent interest in the Çöpler gold mine in Turkey to industrial conglomerate Cengiz Holding A.S. for US$1.5 billion in cash, part of a portfolio pivot toward assets in the Americas.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.