SSR Mining will acquire the Cripple Creek & Victor Gold Mine in Colorado, making the company the third-largest gold producer in the United States.
“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,” said SSR Mining executive chairman Rod Antal.
The mine will be bought for US$100 million (A$156,427 million) in upfront consideration and up to $175 million in milestone-based payments, all in cash. The transaction is expected to close in the first quarter of 2025.
Cripple Creek & Victor is set to add around 170,000 ounces in annual gold production to the company’s portfolio.
SSR Mining’s total U.S. gold production is set to average between 300,000 and 400,000 ounces annually, according to the company.
The mine is currently owned by Newmont Corporation. According to Newmont, Cripple Creek & Victor has produced more than 2.5 million ounces of gold since it bought the mine for $820 million in 2015.
Cripple Creek & Victor, located southwest of Denver, is an epithermal gold deposit. It includes three developed open pit areas across more than 5,000 hectares.
The mine has around 1.3 million ounces of gold mineral reserves, as well as 1.6 million ounces of measured and indicated mineral resources, Newmont estimated in December 2023.
SSR Mining’s Nasdaq (NASDAQ: SSRM) share price closed at US$6.35 on Friday, up from the previous day’s $6.09. Its ASX (ASX: SSR) share price closed at A$9.36, up from the previous day’s $9.24. Its market cap is US$1.29 billion.