Business
SSR Mining Announces The Acquisition Of An Up To 40% Ownership Interest And Operatorship In The Hod Maden Gold-Copper Project Through An Earn-In Structured Transaction
Acquisition Of A World-Class Deposit That Fits SSR Mining’s Strategy, Geographic Focus, And Leverages SSR Mining’s Core Strengths To Create Shareholder Value
About this update from Ssr Mining Inc.
[{"type":"text","content":"\nAcquisition Of A World-Class Deposit That Fits SSR Mining’s Strategy, Geographic Focus, And Leverages SSR Mining’s Core Strengths To Create Shareholder Value \n\n\nHighlights\n\n\n\nSSR Mining to acquire an up to 40% interest and immediate operational control in the Hod Maden gold-copper development project (“Hod Maden” or the “Project”) in northeastern Türkiye from Lidya Mines \n\n\n\n\nAggregate acquisition consideration totals $270 million, which includes $120 million in upfront cash payment to acquire a 10% interest in Hod Maden, followed by $150 million in earn-in structured milestone payments to acquire an additional 30% interest, payable between the start of construction and the first anniversary of commercial production 4\n\n\n\n\nThe acquisition of Hod Maden will add one of the highest margin and lowest capital intensity development projects globally to SSR Mining’s robust portfolio of high-return growth projects and is expected to deliver an estimated all-in after-tax internal rate of return (“IRR”) in excess of 15% after acquisition costs \n\n\n\n\nTransaction is accretive to SSR Mining across all meaningful per share valuation metrics, including Net Asset Value, Mineral Reserves, Mineral Resources, production, operating cash flow, and free cash flow 1\n\n\n\n\nBased on the Feasibility Study – Technical Report NI 43-101 effective February 28, 2021 (“the 2021 Feasibility Study”) published by Horizon Copper Corp. 2, Hod Maden features a 13-year mine life averaging (on a 100% basis) approximately 195,000 ounces of gold equivalent production annually at first quartile co-product AISC of $588/oz, generating $164 million of annual free cash flow and a 36% after-tax internal rate of return (“IRR”) at base case commodity prices of $1,599/oz gold and $3.19/lb copper 3\n\n\n\n\nTransaction projected to provide SSR Mining with approximately an expected attributable 80,000 gold equivalent ounces and $66 million in free cash flow annually (at $1,599/oz gold and $3.19/lb copper) once in production, expected in 2027 3\n\n\n\n\nHod Maden is a world-class, high grade and high-margin asset which will further enhance SSR Mining’s free cash flow generation, which has been a key pillar of the Company’s strategy and sector-leading capital returns program\n\n\n\n\nThe Transaction leverages SSR Mining’s significant experience in Türkiye an...