The Seabee gold mine in Saskatchewan
Gold mining company SSR Mining will acquire the shares of Taiga Gold, expanding its presence in Saskatchewan by adding five new properties that provide exploration targets stretching south from the Seabee mine to the Amisk property.
The transaction, announced on Thursday, will consolidate 100% interest in the Fisher property contiguous to the Seabee mine, currently operated under a joint venture comprised of SSR (80%) and Taiga (20%).
The Fisher property provides future potential ore sources to extend the mine life of Seabee, particularly given the excess capacity at the mill and recently completed tailings expansion that provides capacity through 2031 at current production levels.
“The acquisition of Taiga Gold reiterates our commitment to the Seabee gold mine and ongoing investment for future resource discoveries as we aim to extend Seabee's mine life into the next decade,” said SSR president and CEO Rod Antal.
Nasdaq-, TSX- and ASX-listed SSR will pay C$0.265 a share for Taiga Gold, implying an equity value of about C$27-million. The boards of both companies have unanimously approved the transaction.
The offer price is a premium of 36% to the closing price of Taiga Gold on the CSE on December 1 and a 39% premium to the 20-day volume weighted average price of the junior.
Taiga’s stock surged 28% to C0.25 a share on Thursday.
SSR says the transaction has strong shareholder support with voting support agreements from Eagle Plains Resources and the management and directors of Taiga, for the common shares, options and warrants representing 19.05% of the company’s issued and outstanding common shares.