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Trucks haul gold ore out of an open pit at the Marigold Mine in Nevada, in 2004. The Converse gold project is located six kilometres west of Marigold.DEBRA REID/The Associated Press
SSR Mining Inc. SSRM-T has signed a deal to acquire Roxmore Resources Inc. RM-T and its Converse gold project in Nevada in a transaction worth a total of $712-million.
SSR executive chair Rod Antal says the deal represents a compelling opportunity to add a high-quality multimillion-ounce gold resource next door to its Marigold mine at an attractive valuation.
Converse is located six kilometres west of SSR Mining’s Marigold complex.
For each share they hold, Roxmore shareholders will receive $6.75 in cash plus 0.33 of a share in a new gold exploration company that will hold Roxmore’s Rattlesnake Hills project, Shabu River project and Newton property.
The new company, which will be led by members of Roxmore’s current management, will be funded with US$10-million in cash and will be owned 85.01 per cent by former Roxmore shareholders and 14.99 per cent by SSR Mining.
Roxmore shares closed at $5.32 on the Toronto Stock Exchange on Friday.