07:55 AM EST, 12/06/2024 (MT Newswires) -- SSR Mining ( SSRGF ) said Friday it has agreed to acquire the Cripple Creek & Victor Gold Mine in Colorado from Newmont Corporation ( NEM ) for up to $275 million.

Under the agreement, the company said it would make an upfront consideration of $100 million and $175 million in additional milestone-based payments in an all-cash deal.

It added that the upfront payment is expected to be funded from its current cash position.

Milestone payments include $87.5 million upon regulatory approval of a permit amendment to extend the mine's life and another $87.5 million upon achieving regulatory relief for Carlton Tunnel water flow requirements, the company said.

The mining firms said the acquisition will add production, diversification, and improve cash flow, adding it would also be accretive to key financial metrics, including NAV, gold reserves, and cash flow, and will be funded from the company's $800 million in liquidity.

Upon completion of the transaction, expected in Q1 2025, if the total closure costs at the Cripple Creek & Victor Gold Mine exceed $500 million, SSR Mining ( SSRGF ) will be responsible for 10% of the additional costs while Newmont ( NEM ) will cover the remaining 90%.