SSR Mining expands Nevada landholding with Newmont property purchase
Vancouver-based SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM), formerly Silver Standard Resources, today expanded its landholding in Nevada, USA, acquiring approximately 8,900 hectares contiguous to its Marigold mine, nearly doubling the mine’s land position to 19,800 hectares.
The newly acquired land package, most of which was owned by Newmont Goldcorp Corp. (NYSE: NEM) (TSX: NGT), comprises the Trenton Canyon and Buffalo Valley properties, which together have a reported historical gold production of 340,000 ounces.
As part of the transaction, SSR will pay Newmont and Newmont’s JV partner Fairmile Gold Mining Inc. a total of $22 million cash and grant Newmont a 0.5% net smelter return (NSR) royalty on each of the properties.
The latest purchase increases Marigold’s land position in Nevada’s Battle Mountain-Eureka gold belt by 84% since acquiring the mine, says SSR Mining President and CEO Paul Benson.
Acquired by the company in 2014, the Marigold mine has been in production as early as 1989. Based on the Marigold updated life of mine plan released last summer, the mine is expected to produce about 211,000 ounces of gold each year up until 2027.
In addition to Marigold, SSR also operates gold mines in Saskatchewan, Canada, and Argentina. Last year, the company invested C$31 million in SilverCrest Metals (TSXV: SIL), which is developing a gold-silver project in Mexico.