DENVER — Shareholders have overwhelmingly approved the proposed merger of SSR Mining and Alacer Gold, a company statement said Friday.
Alacer Gold shareholders Voted in favor of the at-market merger with 99.9 percent casting a vote for the resolution, while 96.5 percent of SSR Mining shareholders voting in favor of the resolution. The at-market merger of equals is pursuant to a plan of arrangement under the Business Corporations Act.
On closing of the Transaction, each of the Alacer issued and outstanding common shares will be exchanged for 0.3246 of an SSR Mining common share.
The Alacer shareholders that voted to approve the merger represented 79.9 percent of eligible shares. SSR Mining shareholders approved the issuance of common shares to complete the Transaction by approximately 96.5% of the votes cast at SSR Mining’s special meeting of shareholders that was also held today, representing 61.8% of eligible shares voted.
The transaction is expected to close following the receipt of regulatory and court approvals and other customary closing conditions.
Mining Quarterly reported last month that the companies were planning the all-stock merger,a nd would keep the SSR Mining name, and the Marigold Mine in Nevada and Marigold’s exploration potential will be a key part of the new, larger company.
After the deal closes, the company will have its headquarters in Denver and its corporate office in Vancouver, and SSR Mining shareholders will own roughly 57% of the new SSR. Alacer shareholders will own 43%, according to the merger announcement.
SSR’s current CEO, Paul Benson, said previously in a teleconference that a synergy of the merger will be the savings on his CEO pay and possibly other executive-level changes, but both Benson and Antal said the benefits of the merger will come in the combination of skilled people rather than major financial savings.
Marigold’s land package doubled last year with the acquisition of the Trenton Canyon and Buffalo Valley properties adjacent to Marigold that were owned by Newmont Corp. The land deal was completed before Newmont and Barrick Gold Corp. formed the Nevada Gold Mines joint venture for their operations in Nevada.
The Marigold Mine is north of the Nevada Gold Mines Phoenix Mine, and is west of Battle Mountain. It has been in continuous operation since 1989.
Marigold General Manager Greg Gibson told the Free Press in an email last month that, “we currently have 430 employees and do not anticipate any changes to our workforce.”
SSR Mining operates Marigold, the Seabee gold mine in Saskatchewan, Canada, and the Puna Mine in Argentina, and Alacer brings to the table the Copler Mine in Turkey. There also is exploration potential in Turkey and SSR has two potential projects—Pitarrilla, a large silver deposit in Mexico and San Luis, a gold and silver deposit in Peru.
Michael Anglin, now chairman of the SSR Mining board, will chair the new board that will include five directors each from the two companies.
“The zero-premium merger of SSR Mining and Alacer creates an exciting leading intermediate gold producer with exceptional financing strength, robust margins, strong cash flow generation and long mine lives that will be run by highly experienced management with a track record of value creation,” Benson said in a pervious announcement.
He said the new SSR Mining will be “well-positioned to build on the strong foundations of both companies.”
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