10:53 AM EDT, 05/23/2024 (MT Newswires) -- SSR Mining ( SSRGF ) said Thursday that it has closed the sale of the San Luis project in Peru to Highlander Silver ( HLSCF ) for US$5 million in cash and up to US$37.5 million in contingent payments.

SSR said it expects to receive the contingent payments in five installments beginning with the commencement of an initial drilling program at the project and ending on the second anniversary of commercial production.

SSR said it was also granted a 4% net smelter royalty on the project, which can be halved for US$15 million.

Meanwhile, SSR has a Sector Perform, Speculative Risk rating as well as a $8 price target at National Bank of Canada.

The bank said its rating reflects uncertainty surrounding SSR's remediation at the Copler operation, legal costs and the unknown timing of a potential restart. "Additionally, we see a declining GEO production profile over the N3Y, which is in contrast to several peers expecting production growth."

National Bank expects SSR to receive the remainder of the contingent payments from the San Luis sale in equal installments from 2027-2031.

The miner's share price fell 1.6% at last look to $7.44.

Price: 7.45, Change: -0.10, Percent Change: -1.32