SSR to be 3rd-biggest US gold miner with Cripple Creek & Victor acquisition

SSR Mining (NASDAQ, TSX: SSRM; ASX: SSR) announced on Friday it has acquired the Cripple Creek & Victor (CC&V) gold mine in Colorado from Newmont (NYSE: NEM, TSX: NGT). With this acquisition, SSR is expected to become the third-largest gold miner in the United States.

The transaction includes a $100 million upfront cash payment and up to $175 million in milestone-based payments, for a total of $275 million.

Of the milestone payments, $87.5 million will be paid upon the approval of an amended permit for the CC&V Cresson mine filed by Newmont earlier this year to extend its life by adding leach pad capacity and making operational adjustments. Another $87.5 million will be contingent on regulatory relief related to the Carlton tunnel permitting requirements.

SSR and Newmont have also agreed to share responsibility for closure costs at CC&V. If closure costs exceed $500 million, SSR will fund 10% of the incremental costs, with Newmont covering the remaining 90%.

The transaction is expected to close in the first quarter of 2025, the companies said.

CC&V, located approximately 100 miles (161 km) from SSR Mining’s headquarters in Denver, is anticipated to add approximately 170,000 oz. of annual gold production to the group’s portfolio.

The large-scale open-pit mine has been active for more than 30 years and has gold mineral reserves of approximately 1.3 million oz., plus an additional 1.6 million oz. of measured and indicated mineral resources (exclusive of reserves) and 300,000 oz. of inferred mineral resources.

Combined with the Marigold mine in Nevada, SSR’s total US-based gold production is expected to average between 300,000 and 400,000 oz. annually.

“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,” SSR executive chairman Rod Antal said in a news release.

Shares of SSR Mining traded 5.0% higher in New York on Friday. The US miner has a market capitalization of $1.3 billion.

Newmont divestments

The sale of Cripple Creek & Victor is part of Newmont’s ongoing divestment program aimed at streamlining its portfolio.

Last week, the company announced it would sell its Éléonore mine in Quebec to London-based Dhilmar for $795 million in cash.

A week earlier, the world’s largest gold miner also announced the sale of its Musselwhite gold mine in Ontario to Vancouver-based Orla Mining (TSX: OLA) for $850 million.

In September, Newmont agreed to sell 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 also inched up to as high as $41.64 during Friday’s morning session, for a market capitalization of approximately $47 billion.