Cripple Creek and Victor Gold Mine Acquired by SSR Mining in the US
SSR Mining Inc. has taken a bold step to strengthen its position as a leading gold producer in the United States.
With the acquisition of the Cripple Creek & Victor Gold Mine (CC&V) from Newmont Corporation for $100 million upfront and up to $175 million in milestone-based payments, this transaction cements SSR Mining’s commitment to growth, portfolio diversification, and cash flow generation.
This all-cash deal is set to make SSR Mining the third-largest gold producer in the U.S.
Strategic Importance of the CC&V Acquisition
SSR Mining’s acquisition of CC&V isn’t just another transaction; it’s a strategic leap forward. The mine, located approximately 160 kilometres southwest of Denver, Colorado, will significantly bolster SSR Mining’s portfolio. By adding 170,000 ounces of gold annually, the company’s total U.S. production will reach an impressive 300,000 to 400,000 ounces, positioning it as a formidable player in the gold mining industry.
This move reflects SSR Mining’s focus on acquiring and developing high-return, long-lived assets. The addition of CC&V complements the company’s other operations in Canada, Türkiye, and Argentina, creating a geographically diverse and financially robust portfolio.
A Balanced Investment
The financial structure of the transaction underscores SSR Mining’s prudence. The $100 million upfront payment represents less than 10% of SSR Mining’s current market capitalisation. The company plans to fund the acquisition using its $800 million in existing liquidity, ensuring minimal strain on its balance sheet.
The staged milestone-based payments, up to $175 million, are tied to critical regulatory approvals. These include amendments to the mine’s Cresson Permit and regulatory relief for the Carlton Tunnel. Such a structure preserves SSR Mining’s financial flexibility while aligning the payout with value-adding milestones.
Operational Excellence and Future Potential
CC&V is no stranger to large-scale mining. With a history of over 30 years of open-pit mining, the site boasts 1.3 million ounces in proven and probable gold reserves and an additional 1.9 million ounces in measured, indicated, and inferred resources. The mine’s operations involve traditional open-pit mining techniques and heap leaching, making it a highly efficient and reliable gold production site.
Notably, SSR Mining brings a wealth of expertise to the table. Its successful track record with Marigold, another large-scale U.S. mine acquired in 2014, demonstrates its ability to optimise and grow mining assets. Marigold has generated over $720 million in realised cash and now has an analyst consensus value exceeding $1 billion. This expertise will be pivotal in ensuring a seamless integration of CC&V into SSR Mining’s portfolio.
Expanding the US Gold Mining Landscape
By acquiring CC&V, SSR Mining strengthens its foothold in the U.S., a Tier-1 mining jurisdiction known for its regulatory stability and resource abundance. Rod Antal, Executive Chairman of SSR Mining, remarked: “The acquisition of the Cripple Creek & Victor Gold Mine represents a rare opportunity to add a high-quality producing asset in a Tier-1 jurisdiction at an accretive valuation. CC&V is a proven operation with excellent potential for upside, and it expands our U.S.-based platform.”
This acquisition also aligns with SSR Mining’s long-term strategy of creating a diversified platform focused on free cash flow. The company now operates six key assets across four jurisdictions, ensuring resilience against regional and market-specific challenges.
Community and Environmental Stewardship
SSR Mining’s reputation for responsible mining practices will play a crucial role in maintaining CC&V’s strong relationships with local stakeholders.
The company has committed to upholding the mine’s existing health, safety, and environmental practices. Moreover, SSR Mining’s Denver-based corporate office provides a local presence to address community concerns and regulatory requirements effectively.
The Cripple Creek Deposit
The Cripple Creek deposit, located in Colorado’s Front Range, is a geological marvel. Hosted in Oligocene-age alkaline volcanic and intrusive rocks, the deposit contains both low-grade, disseminated gold-pyrite mineralisation and high-grade gold-silver fracture zones.
These characteristics, combined with the deposit’s amenability to heap leaching, make it a valuable addition to SSR Mining’s portfolio.
Benefits
The acquisition brings significant advantages for SSR Mining’s shareholders and CC&V stakeholders:
- Increased gold production and cash flow generation.
- Accretive value across key metrics, including net asset value and operating cash flow.
- Portfolio diversification with a fifth mine in a Tier-1 jurisdiction.
- Continuation of best practices in health, safety, and environmental stewardship.
- Seamless integration into SSR Mining’s platform, supported by the company’s expertise in large-scale operations.
- Commitment to local community engagement and regulatory compliance.
A Vision for Growth
This acquisition marks a new chapter for SSR Mining. By leveraging its operational expertise and financial strength, the company aims to maximise the potential of CC&V while pursuing high-return growth initiatives across its global portfolio.
As Antal state: “Looking ahead, we have a clear path forward, with a focus on delivering growth initiatives at each of our six key assets as we look to build our position as a leading mid-tier gold producer.”
