Denver-based SSR Mining has announced a $275-million acquisition of the Cripple Creek & Victor (CC&V) gold mine in Colorado from Newmont, marking a significant expansion of SSR’s gold production capacity in the US.

The deal is part of Newmont’s ongoing divestment programme aimed at streamlining its portfolio. SSR Mining executive chairperson Rod Antal described the acquisition as a “rare opportunity”.

“This acquisition ensures our portfolio of both producing and development assets is well balanced and provides our company with a diversified and long-lived free cash flow-focused platform comprised of six key assets,” Antal said.

CC&V is expected to contribute about 170 000 oz/y of gold to SSR’s production. Combined with production from its Marigold mine, SSR’s US-based platform will expand to between 300 000 oz/y and 400 000 oz/y, establishing it as the third-largest gold producer in the country.

The consideration for the acquisition includes a $100-million upfront cash payment and up to $175-million in milestone-based payments. Of this, $87.5-million will be payable upon approval of an amended permit for the CC&V Cresson mine, filed by Newmont earlier this year to extend the mine’s life by adding leach pad capacity and making operational adjustments. Another $87.5-million will be contingent on regulatory relief related to the Carlton Tunnel permitting requirements.

SSR and Newmont have also agreed on shared responsibility for closure costs at CC&V. If closure costs exceed $500-million, SSR will fund 10% of the incremental costs, with Newmont covering the remaining 90%.

The transaction is expected to close in the first quarter of 2025.

Newmont CEO Tom Palmer expressed confidence in SSR’s ability to carry forward the next phase of CC&V’s life.

Newmont has recently concluded the transaction to sell the Telfer mine and a 70% stake in the Havieron project in Australia. In total, Newmont expects up to $3.9-billion in gross proceeds from its divestment programme, including $3.4-billion from asset sales and $527-million from other investments.