SSR Mining (TSX: SSRM) this morning announced that it will be selling off non-core assets of the firm. The assets to be sold consist of the firms royalty portfolio, with the transaction seeing the company take a large stake in EMX Royalty Corp (TSXV: EMX) as a result.
Under the terms of the arrangement, SSR Mining has agreed to sell off its royalty portfolio consisting of 18 royalty interests and what is referred to as “deferred consideration interests.” The interests reportedly cover global jurisdictions, including projects in Turkey as well as multiple projects scattered across the Americas.
The definitive agreement to sell the firms royalty portfolio comes with total consideration of US$100 million, of which US$33 million is in the form of cash. The remainder of the compensation is to consists of $33 million in shares of EMX Royalty, and $34 million in deferred compensation payments. The latter will see compensation provided as project development milestones are reached.
$66 million in initial consideration is to be payable upon closing as a result. Given the size of the transaction, SSR Mining expects to own roughly a 12% in EMX Royalty upon closing of the first portion of the transaction.
The transaction is currently expected to close by the fourth quarter of 2021.
SSR Mining last traded at $20.18 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.