Commodities Videos

VIDEO SIGN OUT

{{ currentStream.Name }}

{{ currentStream.Desc }}

Related Video

Continuous Play:
ON OFF

The information you requested is not available at this time, please check back again soon.

May 11, 2020

SSR Mining buying Alacer Gold in all-stock deal

SSR Mining buying Alacer Gold in all-stock deal

VIDEO SIGN OUT

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

SSR Mining Inc. has struck a friendly agreement to buy Alacer Gold Corp. in an at-market deal.

Under the terms of the transaction announced early Monday, each Alacer share will be swapped for 0.3246 of an SSR share, which works out to a consideration of $8.19 per share – matching Alacer's closing price on the TSX Friday.

The combined entity, which will retain SSR's name, will be 57-per-cent owned by SSR shareholders and will be headquartered in Colorado, with a corporate office in Vancouver, the companies said in a release.

Alacer owns an 80-per-cent-stake in the Çöpler gold mine in Turkey's Erzincan province. In the first quarter of this year, Alacer booked 87,863 ounces of gold production on all-in sustaining costs of US$700 per ounce. Its chief executive officer, Rod Antal, will serve as president and CEO of the combined company.

“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,” Antal said in a release.

The deal is subject to a vote by Alacer shareholders, while SSR shareholders will vote on the share issuance tied to the deal. Both votes are expected to be held in July, the companies said.

SSR has a right to match any superior proposals that might surface and there's a US$70-million break fee applicable for both companies.

National Bank Financial and Scotiabank served as financial advisors to SSR and Alacer, respectively, on the transaction.