SSR Mining (TSX: SSRM) has finally completed its acquisition of Saskatchewan-focused junior explorer Taiga Gold Corp (CSE: TGC). The transaction saw the junior firm acquired in an all-cash transaction.
Under the terms of the transaction, shareholders of Taiga received consideration of $0.265 per share of the company, which at the time of announcement amounted to roughly a 36% premium on the valuation of the company relative to the trading price the day before announcement. Collectively, aggregate consideration is said to have amounted to roughly C$30.0 million.
The announcement of the acquisition back in December followed drill and sample results in mid-November from what was Taiga’s Fisher property. Highlights from that program included 3.54 g/t gold being intersected over 1.83 metres in drilling of the Mac Zone, while grab samples assayed as high as 55.62 g/t gold.
While results may not have been hugely significant, what is significant is that it showed mineralization continued on the property from the nearby Seabee Gold Operation, which Fisher was contiguous to on the north, south, and east. Further, the property was already a joint venture between SSR Mining and Taiga, with SSR having an 80% stake in the property.
To date, SSR Mining had spent over $14.0 million in exploration expenditures on the property since 2016, having drilled over 95 holes while conducting soil sampling, mapping, and surveys. That figure didn’t take into account payments of $3.8 million made to Eagle Plains Resources, a predecessor of Taiga, or the 2.5% royalty Taiga held on most of the claims.
As a result, with over $17.8 million already spent on the property, and a 2.5% NSR, it only made sense for SSR Mining to take the whole piece of the pie as it looks to find additional potential sources of ore in the region. In addition to the Fisher property, as part of the acquisition the company also became the owner of four other properties within the same Trans Hudson Corridor, with the five properties in total amounting to 34,569 hectares. Total claim holdings in the province of Saskatchewan now amount to 131,150 hectares for SSR Mining.
With the closing of the transaction, Taiga Gold shares are expected to delist from the Canadian Securities Exchange in the coming days, while the company will also apply to cease being a reporting issuer.
SSR Mining last traded at $30.40 on the TSX.
Information for this briefing was found via Sedar and the companies 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.