SSR Mining has agreed to acquire the Cripple Creek & Victor (CC&V) gold mine in Colorado, US from Newmont in an all-cash deal worth up to $275m.
The transaction includes an upfront cash payment of $100m. An additional $175m is contingent on achieving regulatory and operational milestones, including mine life extension plans and water flow permitting for the Carlton Tunnel.
The acquisition is expected to significantly enhance SSR Mining’s gold production and portfolio diversification. The Cripple Creek & Victor project is projected to contribute about 170,000 ounces of annual gold production.
Combined with the company’s Marigold mine in Nevada, SSR Mining’s US gold output is anticipated to reach between 300,000 and 400,000 ounces annually.
The deal is in line with SSR Mining’s strategy of focusing on free cash flow generation while adding long-lived, high-return assets to its portfolio.
Located 161km southwest of Denver, the Cripple Creek & Victor gold mine holds approximately 1.3 million ounces of gold reserves, along with additional measured, indicated, and inferred resources.
Newmont’s 2024 guidance for the American gold project forecasts full-year production of 170,000 ounces.
Large-scale open pit mining at the Cripple Creek & Victor project has been active for over 30 years.
Following the closing of the deal, SSR Mining aims to provide updated guidance for the Cripple Creek & Victor gold mine operations in 2025.
SSR Mining executive chairman Rod Antal said: “The acquisition of the Cripple Creek & Victor Gold Mine represents a rare opportunity to add a high-quality producing asset in a Tier-1 jurisdiction at an accretive valuation.
“CC&V is a proven operation with excellent potential for upside, and expands our U.S. based platform to an expected 300,000 – 400,000 ounces of average annual gold production, positioning SSR Mining as the third largest gold producer in the US.”
Upon the completion of the transaction, Newmont is expected to have delivered up to $3.9bn in gross proceeds from non-core asset divestitures and investment sales.
The sale of the Cripple Creek & Victor project is part of Newmont’s broader strategy announced in February 2024 to streamline its portfolio. The initiative identified six operations and two projects across its Australian, Ghanaian, and North American business units.
Newmont president and CEO Tom Palmer said: “We are excited to announce the continuation of our divestment program to streamline the Newmont portfolio as the leading operator of Tier 1 gold and copper assets.
“We are confident that SSR has the capability to deliver the next phase of life for CC&V, the employees who work there, and local stakeholders.”
Subject to regulatory approvals and other pre-closing conditions, the transaction is expected to be completed in Q1 2025.
