SSR Mining to acquire US gold producer Alacer Gold for $1.72bn
SSR Mining, a Canadian precious metals producer, has signed a $1.72 billion all-stock deal to acquire Alacer Gold, a US-based low-cost intermediate gold producer, in a move to create a diversified gold miner with operating assets across four jurisdictions.
Headquartered in Colorado, Alacer Gold primarily focused on operating its Çöpler Gold Mine in Turkey. The Turkish gold mine, which is located in the Erzincan Province, has been in production since late 2010.
SSR Mining, on the other hand, has three operations, which include the Marigold gold mine in Nevada, US, the Seabee Gold Operation in Saskatchewan, Canada, and Puna Operations in Jujuy, Argentina. The Canadian precious metals producer also has a couple of feasibility stage projects and a portfolio of exploration assets across North and South America.
Commenting on the SSR Mining, Alacer Gold merger, Paul Benson – President and CEO of SSR Mining said: “The zero-premium merger of SSR Mining and Alacer creates an exciting leading intermediate gold producer with exceptional financial strength, robust margins, strong cash flow generation, and long mine lives that will be run by highly experienced management with a track record of value creation.
“Consistent with our long-standing strategy of growth through a combination of organic development and M&A, the new SSR Mining will be well positioned to build on the strong foundation of both companies to continue growing and delivering value for all shareholders.”
Post-acquisition, the combined entity will continue as SSR Mining, which will be based in Denver with a corporate office in Vancouver. It will be headed by Rod Antal in the roles of President and CEO, while Michael Anglin will be the Chairman.
As per the terms of the deal, shareholders of Alacer Gold will exchange each of their shares with 0.3246 of SSR Mining shares. The deal values each share of Alacer Gold at CAD8.19 ($6.35) with the combined entity valued at about $4 billion.
Post-closing of the merger, shareholders of SSR Mining and Alacer Gold will have stakes of about 57% and 43% in the combined entity.
Rodney P. Antal – President and CEO of Alacer Gold, commenting on the SSR Mining, Alacer Gold merger, said: “The combination of Alacer and SSR Mining will create a diversified portfolio of high quality, long-life mines across four mining-friendly jurisdictions. Our focus at Alacer over the past several years has been on generating peer-leading free cash flow – this merger allows us to continue this strategy while diversifying our single operating asset exposure.
“In addition, the increased financial strength of the combined business will allow us to leverage the proven project execution capabilities of the combined management team to continue delivering on the extensive organic growth portfolio and compete for attractive assets as they arise. The complementary nature of the assets and the cultural alignment of the organizations will facilitate an effective integration and allow us to continue to deliver value to our shareholders.”
Completion of the SSR Mining, Alacer Gold merger is subject to shareholders, regulatory, and court approvals along with the meeting of other customary closing conditions.