SSR Mining falls after $464 million Roxmore deal

By Reuters News

** Shares of precious metals miner SSR Mining SSRM.TO falls 7.6% to C$46.78

** Co says it has agreed to acquire Roxmore Resources RM.TO for an equity value of about $464 million, excluding the value of a new spun off company, Roxmore Spinco

** RM shares touched its highest since 2020, now up 30.45% at C$6.94

** Under the terms, RM shareholders will receive C$6.75 per Roxmore common share in cash, representing a premium of about 26.9% to the stock's last close, and 0.33 shares of Roxmore Spinco, RM says

** Deal expected to close in Q4

** Upon closing, SSR will acquire Roxmore's Converse Gold Project, while its remaining exploration assets will be spun into Roxmore Spinco, with existing Roxmore shareholders owning a 85.01% stake and SSR a 14.99%

** Initial capital costs for the Converse project are estimated at $800 to $900 million with no material development capital requirements until the early-2030s, SSRM says

** SSRM says a C$18 million termination fee would be payable by Roxmore under certain circumstances if the deal fails to close

** SSRM is up 55.5% YTD, while Roxmore has soared 414.1%, including session moves


($1 = 1.4209 Canadian dollars)

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