SSR Mining to sell San Luis Project to Highlander Silver for up to $42.5 million

DENVER – SSR Mining (NASDAQ:) Inc. has struck a deal to sell its San Luis Project in Peru to Highlander Silver Corp. for a consideration that could reach $42.5 million, a strategic move designed to streamline its asset portfolio. The transaction, announced today, includes an upfront $5 million cash payment and additional contingent payments of up to $37.5 million based on the project’s advancement towards commercial production. SSR Mining will retain a 4% net smelter return (NSR) royalty, with the option to repurchase half of this royalty for $15 million before construction begins.

The sale, expected to close in the first quarter of 2024 subject to regulatory approvals, is part of SSR Mining’s broader initiative to optimize its asset base. Since 2021, the company has divested over $300 million in non-core assets. This divestiture is anticipated to positively impact SSR’s net asset value (NAV) per share, aligning with consensus estimates.

Highlander Silver Corp., backed by industry heavyweights such as the Augusta Group and Lundin Family, is set to bolster its project portfolio in the Central Andes region, which already includes promising ventures like La Estrella and Alta Victoria. The acquisition of San Luis will complement these existing projects, enhancing Highlander’s presence in the area.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.