SSR Mining Inc. has agreed to purchase 8.22 million common shares of the SilverCrest Metals at a price of $3.73 per share for a total investment of C$30.66 million in a non-brokered private placement financing. SSR will then own 9.9% of the outstanding common shares of SilverCrest on a non-diluted basis. This transaction is expected to close on or about December 7. SilverCrest plans to use the proceeds from the private placement for the exploration and development of the Las Chispas Project and related costs, the company said.
“We are pleased to welcome SSR as a new investor in SilverCrest,” CEO N. Eric Fier said. “With this investment, SilverCrest will have more than C$40 million available to explore and advance the Las Chispas project.”
He added, “The investment by SSR is an important endorsement of the Las Chispas project from a mining company that has an established reputation and track record of financial discipline and operating performance which can help to further de-risk and optimize the Las Chispas project.”
In connection with the investment, SSR and SilverCrest have entered into a binding investment agreement for so long as SSR holds 5% or more of the outstanding common shares of SilverCrest, which includes a standstill limiting SSR to acquire up to a maximum of 9.9% of the common shares of SilverCrest; participation rights to maintain pro rata share ownership interest; a right of first refusal on any proposed royalty, stream or offtake agreement; and certain information rights to Las Chispas technical and scientific data.
President and CEO of SSR Mining Paul Benson said, “SilverCrest’s Las Chispas project is a compelling investment proposition for SSR Mining by providing exposure to an exciting high-grade development project with exploration upside in a favorable mining jurisdiction.”
SilverCrest expects to be fully funded to complete a resource update in the first quarter of 2019 on the Las Chispas project, as well as a preliminary economic assessment, construction of an exploration decline into the high-grade Area 51 zone of the Babicanora Vein, an infill and expansion drilling program to upgrade and potentially increase the high-grade precious metal resource, and, with a positive preliminary assessment, a prefeasibility study by the end of 2019.