SSR Mining falls after $464 million Roxmore deal
SSRM•SSRM•SSRM•SSRM•SSR Mining agreed to acquire Roxmore Resources for an equity value of about $464 million, excluding Roxmore Spinco, and its shares fell 7.6%. The deal is expected to close in the fourth quarter.
Roxmore shareholders will receive C$6.75 in cash and 0.33 shares of Roxmore Spinco for each common share, a cash premium of about 26.9% to Roxmore’s last close. SSR Mining will acquire Roxmore’s Converse Gold Project, while the remaining exploration assets will be spun into Roxmore Spinco; existing Roxmore shareholders will own 85.01% of Spinco and SSR Mining 14.99%.
Initial capital costs for the Converse project are estimated at $800 million to $900 million, with no material development capital requirements until the early 2030s, SSR Mining said. SSR Mining shares fell 7.6% to C$46.78, while Roxmore shares rose 30.45% to C$6.94. A C$18 million termination fee would be payable by Roxmore under certain circumstances if the deal fails to close.
