By buying Taiga, SSR would add 5 new properties (whole of 34,569 hectares) to its Saskatchewan venture portfolio, offering new exploration targets stretching south from the Seabee mine to the Amisk property.
The deal would additionally consolidate a 100% curiosity within the Fisher property contiguous to the Seabee mine, presently operated beneath a three way partnership between SSR (80%) and Taiga (20%).
Underneath the settlement, Taiga shareholders would obtain money consideration of C$0.265 per widespread share, representing a 36% premium to the inventory’s closing worth on Wednesday. This means an fairness worth of roughly C$27 million ($21 million) on a completely diluted foundation.
The transaction would additionally get rid of a 2.5% internet smelter return (NSR) royalty overlaying nearly all of the Fisher property, thus unencumbering the asset from future funds.
In accordance with SSR, the Fisher property is ready to present potential ore sources to increase the working lifetime of the Seabee mine sooner or later, notably given the surplus capability on the Seabee mill and the not too long ago accomplished tailings facility enlargement, which supplies capability by means of 2031 at present manufacturing ranges.
Current (September 2021) exploration outcomes introduced by SSR at Fisher included 22.99 g/t Au over 1.46m on the Mac North goal and 10.03 g/t Au over 2.5m on the Yin goal.
“The acquisition of Taiga Gold reiterates our dedication to the Seabee gold mine and ongoing funding for future useful resource discoveries as we purpose to increase Seabee’s mine life into the subsequent decade,” Rod Antal, SSR Mining’s president and CEO, mentioned in a information launch.
“Moreover, the acquisition of latest greenfields exploration properties throughout the province of Saskatchewan ought to enable SSR Mining to construct upon our regional experience in a area we think about exceptionally potential geologically and underexplored,” he added.
Shares of SSR Mining dropped 2.2% by 12:20 p.m. ET following the most recent acquisition information, giving the intermediate gold firm a market capitalization of C$4.7 billion ($3.6bn).