SSR Mining to acquire Roxmore in $464M gold mining deal
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SSR Mining has agreed to acquire Roxmore Resources in a $464 million deal that could expand its long-term gold production in Nevada. The acquisition will give the Denver-based mining company control of the Converse gold project, located approximately 6 kilometers west of its existing Marigold mining complex.
Announced on October 13, the transaction forms part of SSR Mining’s plans to increase US gold production. The company estimates that Converse could produce between 150,000 and 170,000 ounces of gold annually over a mine life of more than 10 years, with initial production expected in 2033.
SSR Mining also expects the integration of Converse with Marigold to generate more than $200 million in operating and administrative savings over the project’s life.
Under the agreement, Roxmore shareholders will receive C$6.75 per share in cash, along with shares in a new exploration company holding Roxmore’s remaining projects. The acquisition is expected to close in the fourth quarter of 2026, subject to shareholder, court and other approvals.
Converse gold project could expand SSR Mining’s US production
The Converse gold project will add to SSR Mining’s mineral resource base in Nevada, where the company already operates the Marigold mine.
Roxmore’s 2026 mineral resource estimate identified approximately 5.2 million ounces of gold, including 2.2 million ounces of indicated resources and 3 million ounces of inferred resources.
These figures suggest a large deposit, although further technical work is needed to determine how much gold can be economically recovered.
SSR Mining plans to develop Converse as an open-pit mine using conventional truck-and-shovel methods. The proposed operation would also use crushing and heap leaching to process ore and recover gold.
The project could contribute to wider production growth across SSR Mining’s US portfolio, which includes Marigold and the Cripple Creek & Victor operation in Colorado.
The company forecasts annual US gold production of between 350,000 and 400,000 ounces from 2033 through 2042, with output potentially exceeding 450,000 ounces during peak years.
The acquisition follows an updated development plan for Marigold, also announced on October 13. That plan outlined a 20-year operating life and increased the complex’s reported gold reserves to 4.6 million ounces.
It also included the planned Buffalo Valley satellite operation, which is expected to begin production in 2029.
These developments could extend SSR Mining’s production outlook in Nevada, where the company is planning several mining projects within the same region.
However, the production estimates remain dependent on future investment, technical studies and the successful development of the proposed operations.
Marigold integration could deliver more than $200 million in savings
The location of Converse is a major factor behind SSR Mining’s decision to acquire Roxmore.
The project borders Marigold and sits approximately 6 kilometers from the mine’s main infrastructure. This proximity could allow SSR Mining to coordinate operations and avoid some of the costs associated with developing Converse as a separate mining business.
The company estimates that integrating the two operations could generate more than $200 million in undiscounted savings over the life of Converse.
Most of these savings are expected to come from shared site management, corporate administration and procurement.
SSR Mining is also assessing opportunities to coordinate maintenance, equipment use and water management across the two properties.
Developing nearby deposits can reduce operating costs when existing facilities, equipment and support services can be used across multiple sites.
Marigold has operated since 1989, giving SSR Mining decades of experience in the region. Its existing workforce, infrastructure and knowledge of local mining conditions could support the development of Converse.
However, the new project will still require considerable investment.
SSR Mining estimates initial construction costs of between $800 million and $900 million. The company expects most development spending to begin in the early 2030s, following the planned start of production at Buffalo Valley.
This schedule could allow SSR Mining to spread major capital investments across several years while maintaining production at its existing operations.
The acquisition will be funded through existing cash reserves rather than new SSR Mining shares.
While this avoids issuing additional shares, the financial performance of Converse will depend on construction costs, future gold prices, recovery rates and operating expenses.
The company’s estimated savings will also depend on how effectively the two mining operations can share resources without affecting production.
Permitting and development will determine Converse’s future
Several development stages remain before Converse can begin producing gold.
The proposed mine will require federal permits through a process led by the US Bureau of Land Management.
This will involve environmental baseline studies, a mine plan and an environmental impact statement to assess the project’s potential effects and establish the conditions for development.
SSR Mining has identified permitting, environmental studies and further technical assessments among its near-term priorities.
Additional engineering work will examine processing methods, infrastructure requirements and operating assumptions. The findings could influence the final mine design, construction costs and development schedule.
Although SSR Mining has experience operating in Nevada, Converse will require its own approvals before construction and mining can proceed.
There are also uncertainties surrounding the project’s resource estimates.
The company’s production forecasts are based on its current assessment of Converse and have not yet been supported by a completed development plan establishing mineral reserves for the project.
Mineral resources represent estimated quantities of gold within a deposit. Mineral reserves require further evidence that the gold can be economically extracted under defined operating conditions.
Future gold prices, processing costs and recovery rates could therefore influence how much of the Converse resource becomes economically viable.
The proposed 2033 production start also leaves several years for permitting, engineering and investment decisions. Any changes to the development schedule could affect when the project begins contributing to SSR Mining’s production.
For the wider US gold mining industry, the acquisition highlights the financial advantages that can arise when companies develop deposits close to established operations.
Existing infrastructure, regional experience and shared services can help reduce the cost of bringing new mining projects into production.
For SSR Mining, the next steps will be completing the Roxmore acquisition and advancing the technical and environmental work needed to determine the long-term role of Converse within its Nevada operations.
Source:
Business Wire
