Canadian-based SSR Mining Inc. has entered into an agreement to purchase the remaining 25% interest in Puna Operations Inc. from Golden Arrow Resources Corp. for aggregate consideration of approximately $34 million. This will result in SSR Mining holding a 100% stake in the operation located in Jujuy, Argentina.
SSR President and CEO Paul Benson said, “This is a positive deal for both parties, in that it allows SSR Mining to consolidate our ownership in Puna Operations and streamline our reporting structure, while benefiting Golden Arrow by providing funding to pursue its exploration projects, eliminating its debt obligation to us, and cancelling our shares in Golden Arrow.”
This transaction will increase SSR Mining’s expected silver production in 2019 to 6.5 million ounces, based on midpoint production guidance, the company said.
The agreement will need approval by the Golden Arrow shareholder. The board of directors have already unanimously approved the transaction. The transaction is expected to close in the fourth quarter of 2019.