SSR Mining Offers C$6.75 a Share to Buy Roxmore, Targets Annual Output of Up to 170,000 Ounces
Key Facts
SSR Mining announced on October 13 an agreement to acquire all issued and outstanding shares of Roxmore Resources for C$6.75 a share, in a deal that would give it the Converse gold project near its Marigold complex in Nevada. The company said developing the project as a contiguous extension of the complex could generate more than $200 million in synergies over the mine’s life, compared with developing it independently. The agreement is a step toward adding a long-term resource to the company’s assets in the Americas. The deal was not complete when it was announced, however, as it requires approval from Roxmore shareholders and the court. SSR expected completion in the fourth quarter of 2026.
Converse is 6 kilometers west of the Marigold complex, and SSR estimates the project could produce 150,000 to 170,000 ounces of gold annually for more than 10 years. The company set 2033 as the target year for production to begin, making the project’s contribution to supply a prospect for later years. Mineral resources for 2026 are estimated at about 2.2 million ounces of gold in the indicated category and 3.0 million ounces in the inferred category. The integrated development case with Marigold assumes a price of $2,200 an ounce for the reserve pit shell and $2,500 for the resource pit shell. That compares with the standalone valuation of Converse, which used $3,000 an ounce for the resource pit shell.
SSR estimated initial project construction capital at between $800 million and $900 million and said it does not expect significant development capital requirements before the early 2030s. The estimates put the project’s cost in the context of a production schedule that, under the announced target, begins in 2033. Under the agreement, former Roxmore shareholders will receive shares in a new exploration company that will hold the Rattlesnake Hills, Shabu River and Newton projects. SSR will own a 14.99% stake in the new company, with former shareholders holding 85.01%, and will fund it with $10 million. The arrangement transfers the exploration projects to the new entity while focusing the acquisition on Converse.
SSR estimated the deal’s fully diluted equity value, excluding the new company, at about $464 million and its enterprise value at about $392 million. It said the cash consideration represents a 27% premium to Roxmore’s closing share price on October 9 and a 47% premium to its 20-day volume-weighted average price through the announcement. Roxmore senior executives and certain major shareholders, who together own about 26.8% of its fully diluted shares, agreed to vote in favor of the deal. Shareholder and court approvals remain conditions to completion, despite their agreement to support it. The expected closing date was the fourth quarter of 2026.
The agreement came as SSR reported third-quarter 2026 revenue of $447.7 million, up 16% from $385.8 million in the same period of 2025. The company attributed the increase mainly to a 21.2% year-over-year rise in the average realized gold price and a 39.3% increase in the realized silver price. In the first nine months of 2026, production totaled 315,459 gold-equivalent ounces, and the company said performance remained in line with its annual production guidance of 450,000 to 535,000 ounces. It nevertheless expected full-year all-in sustaining costs to exceed the upper end of its original guidance by about 10%. The company attributed this to the re-sequencing of ore processing at Puna, higher royalties, diesel-price pressure, and inflation in labor and input costs; it said the re-sequencing delays processing of low-cost stockpile ore planned for 2026.
As part of its capital allocation, SSR’s ordinary-course issuer bid, approved in March 2026, allows it to buy back up to 21.5 million shares through March 30, 2027. The board added $500 million to the amount allocated for repurchases in June. The company also announced on November 3 a quarterly cash dividend of $0.03 a share, payable on December 11 to shareholders of record on November 13. SSRM closed at $28.38 on November 6, while GARLF closed at $4.91 on the same day. These developments combine shareholder returns with a growth plan whose significant capital spending must wait until the early 2030s.