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(Kitco News) - SSR Mining will acquire up to a 40% interest in the Hod Maden gold-copper project in Turkey and assume operational control of the asset upon closing of the transaction.
SSR Mining will pay cash consideration of US$270 million.
"We are very pleased to welcome a seasoned operator like SSR Mining to the development team at Hod Maden,” said Nolan Watson, Sandstorm's President & CEO. "We believe the addition of SSR Mining will complement the work that Lidya has undertaken over the last several years, working meticulously to de-risk Hod Maden through permitting and securing regulatory approvals."
A feasibility study for Hod Maden was released in 2021 which considered an underground mine with a processing rate of 800,000 tonnes per annum. The base case has a mine life of 13 years with average annual production of 195,000 ounces of AuEq per year at an average head grade of 11.1 g/t AuEq. The average recovery is expected to be 85% for gold and 93% for copper.
Upfront capital expenditure is estimated at $309 million and once the mine is up and running the all-in sustaining costs are estimated to be $334 per ounce gold on a by-product basis and $595 per ounce gold on a co-product basis. The pre-tax NPV, using a 5% discount rate, is $1.3 billion with an internal rate of return of 41%.
