Canada’s SSR Mining Inc. is buying Denver-based miner Alacer Gold Corp. in an all-stock, zero premium transaction worth $2.4-billion, the latest big mining deal aimed at trying to win back the interest of institutional investors.
Vancouver-based SSR operates precious metals mines in Canada, the United States and Argentina. Alacer’s chief asset is the Copler gold mine in Turkey.
SSR is paying 0.3246 of its shares for each Alacer share, equivalent to $8.19 a share, the same level Alacer closed at on Friday.
Michael Anglin retains his position as SSR’s chairman, while Alacer chief executive Rod Antal will assume that role at the combined company. SSR’s head office will move from Vancouver to Denver; Vancouver will retain a branch office.
With the acquisition, SSR is expected to produce about 780,000 ounces of gold, not quite the rarefied air of the million ounce-plus producers, but enough production to distance itself from a horde of smaller producers.