SSR Mining Announces $464M Acquisition of Roxmore Resources, Stock Drops
On Tuesday at around 12:55 p.m. ET, SSR Mining (NASDAQ: SSRM) announced the acquisition of Canadian gold miner Roxmore Resources for $464 million in cash. The stock dropped by approximately 7.8% following the news. SSR explained that the purchase will allow it to combine operations at its Marigold Complex with Roxmore's Converse Project, located just three-and-a-half miles away in Nevada. This consolidation is expected to reduce annual operating costs by up to $200 million and increase gold production between 150,000 to 170,000 ounces annually. The acquisition also includes plans for SSR to spin off most of Roxmore's other assets while retaining a minority stake in certain projects. The company anticipates the deal will be highly profitable over time but acknowledges it may not immediately impact revenue or earnings.
Topics: Corporate Strategy Gold Mining Mining
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