SSR sells 20% Hod Maden stake, holds net smelter royalty
Denver-based precious and base metals producer SSR Mining has signed a definitive agreement to sell its 20% stake in the Hod Maden gold and copper development project, in Türkiye, to Lidya Mines for an uncapped 4% net smelter return (NSR) royalty on the project.
SSR expects the royalty consideration to deliver an accretive outcome for its shareholders.
The transaction, together with the previously announced sale of the Çöpler mine in Türkiye and acquisition of the Cripple Creek & Victor mine in Colorado, completes SSR Mining’s strategic refocus to an Americas platform.
These transactions reinforce the company’s position as a leading free cash flow, capital-returns-focused gold and silver producer, anchored by its long-lived Marigold and Cripple Creek & Victor operations in the US.
Concurrently with the transaction, the other partner in the project, Royal Gold, will sell 15% of its ownership interest to Lidya for a 2.5% NSR, while retaining a 15% interest in the project.
Lidya Mines will therefore become the operator of the project with an 85% stake.
Royal Gold’s NSR will be issued with substantially the same terms as the SSR NSR.
SSR has invested about $243-million on Hod Maden to date, but will have project operator duties not further funding obligations once the deal concludes in the third quarter of the year.
The Hod Maden NSR will add to SSR’s existing royalty portfolio, which includes royalties on the Sunrise Lake property owned by Honey Badger Silver, the San Luis project owned by Highlander Silver, the Pitarrilla project owned by Endeavour Silver and the Rowan property owned by West Red Lake Gold.
