SSR Mining to Acquire Roxmore Resources for $464 Million

SSR Mining agreed to buy Nevada-focused explorer Roxmore Resources for C$660.1 million ($464 million) in an all-cash deal. The acquisition gives SSR Roxmore’s Converse project, located just six kilometers west of SSR’s producing Marigold mine.

The Converse project could add 150,000 to 170,000 ounces of annual gold production over a 10-year period. This move strengthens SSR’s position among major U.S. gold producers. The deal also follows SSR’s sale of its 80% stake in Turkey’s Çöpler mine earlier this year.

Roxmore shares rose 30% to a new 52-week high of $6.96 each following the announcement. In contrast, SSR shares fell 7% to C$46.72 ($32.86) on Tuesday. Analysts suggested high initial costs at Converse, estimated at $829 million, may have contributed to SSR’s stock decline. The Converse project has a post-tax net present value of $2.7 billion, assuming gold at $3,600 per ounce.

SSR also released an updated report for its Marigold mine, extending its life by five years to 20 years. Probable gold reserves at Marigold increased 43% to 4.6 million ounces. The mine’s post-tax net present value more than tripled to $3.3 billion, based on a gold price of $3,948 per ounce.