SSR Mining (TSX: SSRM) has agreed to acquire Roxmore Resources (TSX: RM) in a largely cash deal that would bring the Converse gold project, which sits just 6 kilometres west of SSR’s Marigold complex in Nevada, under common ownership with the mine next door.
Roxmore shareholders will receive C$6.75 in cash per share, along with 0.33 of a share in a newly formed exploration company that will hold the Rattlesnake Hills, Newton and Shabu River properties. Roxmore values that stake at about C$0.50 per share, putting total consideration at roughly C$712 million on a fully diluted basis.
The cash portion alone represents a 27% premium to Roxmore’s October 9 close and a 47% premium to its 20 day volume weighted average price. SSR pegs the fully diluted equity value at about US$464 million and the enterprise value at US$392 million, and will fund the purchase from its existing balance sheet.
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The spinout will be capitalized with US$10 million and led by Roxmore chief executive John Dorward. Roxmore shareholders will own 85.01% of it, with SSR holding the remaining 14.99%.
Converse hosts indicated resources of 2.2 million ounces of gold at 0.65 g/t, along with 3.0 million inferred ounces at 0.43 g/t. SSR intends to develop it as an extension of Marigold rather than as a stand alone operation, and estimates the approach will yield at least US$200 million in life of mine synergies. Most of those savings come from eliminating duplicate site and corporate overhead, with further gains from procurement and supply chain efficiencies.
Under SSR’s plan, Converse could add 150,000 to 170,000 ounces of gold a year over a mine life of 10 years or more, with first production targeted for 2033. Initial capital is estimated at US$800 million to US$900 million, although no material spending is expected until the early 2030s.
“We have been carefully monitoring the progress of the Converse deposit for some time, and have conducted a focused due diligence review of the asset,” said executive chairman Rod Antal. “SSR Mining is the natural acquiror of this exciting deposit.”
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With Converse in the mix, SSR expects its US operations to average 350,000 to 400,000 ounces annually between 2033 and 2042, topping 450,000 ounces in peak years.
The deal requires approval from two-thirds of votes cast by Roxmore securityholders at a special meeting expected in December. Directors, officers and largest shareholder L1 Capital, together holding about 26.8% of the shares, have signed voting support agreements, and Roxmore’s board has unanimously recommended the transaction. A C$18 million break fee is payable to SSR in certain circumstances, and closing is expected in December 2026.
The acquisition landed alongside an updated technical report for Marigold, which now carries a 20 year mine life built on 4.6 million ounces of reserves, up 43% from year end 2025.
The plan carries an after-tax net present value of US$3.3 billion at a 5% discount rate, based on consensus gold prices averaging US$3,948 per ounce, rising to US$3.8 billion at spot. Production is expected to average 231,000 ounces a year from 2027 through 2031 and 169,000 ounces over the life of mine, totalling 3.3 million ounces at an all-in sustaining cost of US$2,062 per ounce.
Growth capital comes to US$542 million, covering a fleet expansion and the Buffalo Valley deposit, which is slated for first production in 2029. Total life-of-mine capital, including sustaining costs and reclamation, sits at US$1.39 billion.
SSR Mining last traded at $50.64 on the TSX.
