Avalon gets $2.5 million from Sibelco to advance non-JV projects
The companies are partners on the Separation Rapids lithium project in Kenora, Ontario, which is currently in the drilling stage.
SSR Mining (NASDAQ, TSX: SSRM) announced Friday it has elected to exercise its equity participation right pursuant to its agreement with SilverCrest Metals (TSX: SIL) to purchase — on a private placement basis — 1.82 million common shares of SilverCrest at a price of C$7.28 per share for total consideration of C$13.2 million.
In conjunction with the private placement, SSR Mining has entered into a transaction with a third party to divest the newly acquired SilverCrest shares at C$8.45 per share for a pre-tax gain of approximately C$2.1 million.
Following the disposition, the company would own approximately 9 million common shares in SilverCrest, representing 8.5% of those outstanding.
“This transaction presents an attractive outcome for both companies, it delivers SSR Mining shareholders an immediate financial gain while providing SilverCrest additional capital for the continued exploration and development of the Las Chispas project,” stated Paul Benson, president and CEO of SSR Mining.
SSR is currently focused on developing its Marigold mine in Nevada, which has been in production since as early as 1989.
Last summer, the company expanded its landholding in Nevada’s Battle Mountain-Eureka gold belt by acquiring a contiguous property package from Newmont Goldcorp (NYSE: NEM) (TSX: NGT).
