Business
SSR Mining and Alacer Gold Announce At-Market Merger of Equals to Create a Free Cash Flow Focused, Diversified Gold Producer
All dollar figures in US dollars unless otherwise stated VANCOUVER and TORONTO, May 11, 2020 /PRNewswire/ - SSR Mining Inc. (NASDAQ: SSRM and TSX: SSRM) ("SSR
About this update from Ssr Mining Inc.
[{"type":"text","content":"All dollar figures in US dollars unless otherwise stated\n VANCOUVER and TORONTO, May 11, 2020 /PRNewswire/ - SSR Mining Inc. (NASDAQ: SSRM and TSX: SSRM) (\"SSR Mining\") and Alacer Gold Corp. (TSX: ASR and ASX: AQG) (\"Alacer\") are pleased to announce that they have entered into a definitive agreement (the \"Agreement\") to combine in an at-market merger of equals pursuant to a plan of arrangement under the Business Corporations Act (Yukon) (the \"Transaction\"). \nThe combined entity will continue as SSR Mining Inc. and will be headquartered in Denver, Colorado with a corporate office in Vancouver, B.C. and will be led by Rod Antal as President & CEO and Michael Anglin as Chairman. Following the completion of the Transaction, the new board of directors will be comprised of five directors from each of the current SSR Mining and Alacer boards of directors for a total of 10 directors, including the CEO. \nPursuant to the Transaction, Alacer shareholders will receive 0.3246 SSR Mining shares for each Alacer share held (the \"Exchange Ratio\"). The Exchange Ratio, together with closing prices for both SSR Mining and Alacer common shares on the Toronto Stock Exchange on May 8, 2020, implies consideration of C$8.19 per Alacer common share and a combined market capitalization of approximately $4.0 billion. At closing, SSR Mining and Alacer shareholders will collectively own approximately 57% and 43% of SSR Mining, respectively, on an issued and outstanding share basis. \nTransaction Highlights\nDiversified Operating Platform: Creates a diversified portfolio of high quality, long life operating assets across four jurisdictions Consensus1 forward-looking 3-year average annual production profile of ~780 koz AuEq at ~$900/oz AISC2Experienced Leadership Team: Combines management with shared track records of creating value through exploration, construction, and operations Brings together expertise in open pit, underground, pressure oxidation, heap leach, and flotation operationsFree Cash Flow Leader: Based on consensus estimates3, the combined entity is expected to generate peer leading average annual pro forma free cash flow4 of ~$450 million (2020E-2022E), well ahead of a peer group annual average of $275 million Financial Strength: Strong balance sheet with consolidated cash5 and marketable securities of ~$700 million to support growth...