Mentioned:
SSR Mining is buying out a Canadian public company with a gold project in Nevada. But, why?
What’s happening:
- SSR Mining (NASDAQ: SSRM) has entered into a new deal to acquire Roxmore Resources (TSX: RM) for approximately $650M CAD
By the numbers:
- SSR Mining will pay $6.75 CAD per share to acquire Roxmore Resources which is roughly a 27% premium to the last closing price
Why it matters:
- Roxmore Resources owns the Converse Gold Project project located in the Battle Mountain-Eureka Trend in Humboldt, Nevada which is roughly 6 kilometres away from SSR Mining’s Marigold mine
Going deeper:
- Roxmore Resources’ Converse Gold Project has an indicated and inferred resource of roughly 5.2M ounces of gold
- SSR Mining recently sold their 80% stake in the Copler mine located in Türkiye for roughly $1.49B USD and will buy Roxmore Resources in an all cash transaction
The fine print:
- Roxmore Resources’ shareholders will need to secure at least 66% approval for the acquisition before the deal with SSR Mining can officially close
