SSR Mining Reaches Deal To Acquire Full Stake In Puna Operations
(Kitco News) - SSR Mining Inc. (NASDAQ, TSX: SSRM) said late Monday that the company has reached an agreement to acquire the remaining 25% interest in the Puna Operations joint venture in Argentina from Golden Arrow Resources Corp. (TSXV: GRG) for $34 million.
SSR said closing of the deal, which would make it sole owner, would increase its expected silver production in 2019 to 6.5 million ounces, based on mid-point production guidance.
“This is a positive deal for both parties, in that it allows SSR Mining to consolidate our ownership in Puna Operations and streamline our reporting structure, while benefiting Golden Arrow by providing funding to pursue its exploration projects, eliminating its debt obligation to us, and cancelling our shares in Golden Arrow,” said Paul Benson, president and chief executive officer of SSR.
The deal calls for SSR to pay approximately $34 million, including $2.3 million in cash upon closing cancellation of the outstanding principal and accrued interest on a $10 million non-revolving term loan, approximately $20 million in common shares of SSR Mining, and payment of Golden Arrow’s portion of any cash calls made by Puna Operations. The transaction would also transfer to Golden Arrow for cancellation some 4.3 million shares of Golden Arrow held by SSR, valued at around $0.8 million.
The deal, which was unanimously approved by Golden Arrow’s board of directors, requires approval of at least two-thirds of the votes cast by the shareholders of Golden Arrow at a special meeting, officials said.