Newmont Corp (TSX: NGT) has entered into an agreement to sell of yet another of its assets. The latest asset to leave the company is the Cripple Creek & Victor operation, which is found in Colorado. The asset has been sold to SSR Mining (TSX: SSRM), for total consideration of up to $275 million in cash.
The transaction is expected to established SSR Mining as the third largest US gold producer, with estimated annual production of 300,000 to 400,000 ounces in-country.
Cripple Creek in 2024 is expected to produce 170,000 ounces of gold at cash costs of $1,270 per ounce. All in sustaining costs are estimated at $1,610 per ounce, The project as of December 31, 2023 boasts mineral reserves of 1.3 million gold ounces, plus 1.6 million ounces of measured and indicated gold, and 0.3 ounces of inferred gold.
Up front consideration under the terms of the transaction amounts to $100 million, with the remaining $175 million to be subject to certain milestones being achieved. Those milestones include an $87.5 million payment upon a permit amendment being approved by state regulators. The amendment will enable the construction of phase four of the Valley Leach Facility 2, and phase six of the Valley Leach Facility 1. A second $87.5 million payment is payable upon regulatory relief being provided in relation to flow-related permitting requirements for the Carlton Tunnel.
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The purchase is said to be accretive to SSR Mining’s per share metrics, including net asset value, gold production, gold mineral reserves and resources, operating cash flow, and free cash flow.
READ: Newmont Sells Eleonore Mine To Private UK-Based Firm For $795 Million
For Newmont, the transaction brings total divestures to $3.9 billion since its acquisition of Newcrest Mining last year. This latest deal follows the sale of the Eleonore Mine for $795 million and the Musselwhite Gold Mine for $810 million in cash in two separate transactions last month.
The transaction is currently slated to close in the first quarter of 2025.
Newmont last traded at $57.53 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
