SSR Mining Acquires Cripple Creek & Victor Gold Mine from Newmont for $280 Million
Denver, Friday, 6 December 2024.
SSR Mining Inc. has secured an acquisition deal for the Cripple Creek & Victor Gold Mine from Newmont Corporation, enhancing its portfolio with an expected closure in early 2025.
Deal Structure and Financial Terms
SSR Mining Inc. (TSX:SSRM) has entered into a definitive agreement to acquire the Cripple Creek & Victor (CC&V) Gold Mine from Newmont Corporation (NYSE:NEM) on December 6, 2024 [1]. The transaction involves a $100 million upfront cash payment and up to $175 million in milestone-based payments [1][2]. The milestone payments include $87.5 million contingent upon approval of the CC&V Cresson Permit amendment and another $87.5 million tied to regulatory relief for Carlton Tunnel permitting requirements [1]. The company plans to fund the acquisition through its existing liquidity of over $800 million [2].
Strategic Impact and Production Outlook
This acquisition is set to establish SSR Mining as the third-largest gold producer in the United States [3]. CC&V is expected to contribute approximately 170,000 ounces of annual gold production, which, when combined with SSR’s Marigold mine, will boost the company’s total U.S. gold production to between 300,000 and 400,000 ounces annually [2][3]. According to Newmont’s 2024 guidance, CC&V operates with a cost of sales of $1,270 per ounce and an all-in sustaining cost (AISC) of $1,610 per ounce [2].
Asset Details and Resources
The CC&V mine, located 160 kilometers southwest of Denver, Colorado, has a rich mining history dating back to the 1890s [2]. As of December 31, 2023, the mine boasts significant mineral reserves of approximately 1.3 million ounces of gold, comprising 500,000 ounces in Proven Reserves and 800,000 ounces in Probable Reserves [2]. Additionally, the asset holds 1.6 million ounces in Measured and Indicated Resources and 300,000 ounces in Inferred Resources [2].
Closing Timeline and Management Perspective
The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals and preclosing conditions [1][4]. Rod Antal, Executive Chairman of SSR Mining, characterized the acquisition as “a rare opportunity to add a high-quality producing asset in a Tier-1 jurisdiction at an accretive valuation” [4]. The deal includes a shared responsibility arrangement for closure costs, with SSR funding 10% of incremental costs exceeding $500 million, while Newmont will cover the remaining 90% [3].