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SSR Mining Announces the Sale of Its San Luis Project for Total Consideration of up to US$42.5 Million and a 4% NSR Royalty
DENVER--(BUSINESS WIRE)-- SSR Mining Inc. (NASDAQ/TSX: SSRM, ASX: SSR) (“SSR Mining” or the “Company”) announced today that it has entered into a definitive
About this update from Ssr Mining Inc.
[{"type":"text","content":" DENVER--(BUSINESS WIRE)--\nSSR Mining Inc. (NASDAQ/TSX: SSRM, ASX: SSR) (“SSR Mining” or the “Company”) announced today that it has entered into a definitive agreement to sell its San Luis Project (“San Luis” or the “Project”) to Highlander Silver Corp. (CSE:HSLV) (“Highlander Silver”) in exchange for total consideration of up to US$42.5 million (the “Transaction”).\n\n\nTotal consideration consists of US$5.0 million in upfront cash and up to US$37.5 million in contingent payments payable in cash. Pursuant to the terms of the agreement, SSR Mining will retain a 4% net smelter returns (“NSR”) royalty on the Project, which will be granted prior to the closing of the Transaction.\n\n\nThe upfront cash component of the consideration will be paid upon closing of the Transaction and the contingent payments are expected to be received in five installments beginning with the commencement of an initial drilling program at the Project and ending on the second anniversary of commercial production from the Project. Under the terms of the agreement, at any time until commencement of construction, half of the NSR royalty can be repurchased by Highlander Silver for US$15 million in cash.\n\n\nClosing of the Transaction is expected to occur in the first quarter of 2024, and is subject to the receipt of any required regulatory approvals and certain customary closing conditions for transactions of this nature.\n\n\nThe Transaction is expected to be accretive to SSR Mining on a NAV per share basis, based on street consensus estimates. With this transaction, SSR Mining continues to deliver on its goal of portfolio rationalization, realizing more than US$300 million in aggregate consideration for non-core assets since the start of 2021.\n\n\nSan Luis is a greenfield gold and silver development project located in the Ancash Department of Central Peru.\n\n\nAbout Highlander Silver\n\n\nHighlander Silver Corp., backed by the Augusta Group and the Lundin Family, is a mineral exploration company focused on the discovery of exceptional silver-gold-polymetallic projects in the Central Andes, leveraging the team’s significant technical and operational experience in Peru and South America more widely. Currently the Company is developing the La Estrella and Alta Victoria projects in central Peru. The Company is listed on the CSE under the ticker symbol HSLV ...