Canadian precious metals producer SSR Mining announced it would to buy Alacer Gold in an all-stock deal valued at CA$2.41 billion (US$1.72 billion), adding heft as gold prices surge due to demand for the yellow metal in an uncertain economy, reported Reuters.
Gold miners have benefited from a 12% jump in prices this year as investors seek safer assets to shield themselves from the damaging impact of the coronavirus outbreak on the global economy.
The move also comes on the back of a record year of mergers and acquisitions in the sector, including some of the biggest deals in a decade in 2019.
The new company, which will be headquartered in Denver, Colorado, will have operational mines in four countries and will be led by Alacer CEO Rodney Antal, the two companies said on Monday, May 11.
“The combination … vaults us into the upper echelon in the peer group in terms of free cash flow generation,” Antal said in a conference call with analysts.
Alacer has focused over the past several years on free cash flow generation, and this merger allows the miner to continue this strategy while diversifying its single operating asset exposure, Antal said.
SSR Mining has operations in Nevada, United States, Saskatchewan, Canada, and Jujuy, Argentina, while Alacer is a low-cost gold producer focused on its cornerstone Çöpler Gold Mine in Turkey.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
