SSR Mining Inc. has reached an agreement to acquire up to 40% of the Hod Maden gold-copper development project in Turkey from Lidya Mines. Lidya Mines and Horizon Copper Corp. currently own a 70% and 30% stake respectively in Hod Maden.
SSR Mining is a leading gold company with operations located in the US, Turkey, Canada, and Argentina. Over the last three years, the four operating assets have produced on average more than 700,000 gold-equivalent ounces per year.
Payments for the 40% stake in Hod Maden include US$120 million in cash (for the initial 10%) and US$150 million in earned cash milestone payments (for the additional 30%).
SSR Mining is now the sole operator responsible for project development, construction and operations.
“We have been closely monitoring Hod Maden for well over seven years as it has progressed through critical development and permitting milestones, largely de-risking the Project as it approaches a construction decision in 2024,” said Rod Antal, President and CEO of SSR Mining.
“We believe there are several positive operational value levers as well as exploration potential beyond the existing life of mine plan that was presented in the 2021 Feasibility Study. It is clear that Hod Maden is one of the highest margin, lowest capital intensity projects in the sector, and once operational should be a meaningful free cash flow contributor to the SSR Mining business as our fifth producing asset.”
Hod Maden could produce more than 2 million ounces of gold
That feasibility study suggested (on a 100% basis) total gold production of 2,027,000 ounces and copper production of 255,000,000 pounds over a 13-year life of mine – equating to annual production of 156,000 ounces of gold and 19,600,000 pounds of copper.
That would equate to a revenue split of 80/20 in favour of gold.
The aim is to advance Hod Maden to deliver first production in 2027. SSR Mining will use the same principles and techniques as the Çöpler Sulfide Plant project, also in Turkey.
Following completion of the payment milestones, SSR Mining will own 40%, Lidya Mines 30% and Horizon 30%. Horizon acquired its stake from Sandstorm Gold Ltd. in 2022 in exchange for a gold stream on production from a portion of Horizon’s 30% interest and certain other non-cash considerations.
The Hod Maden project is located in northeastern Turkey, around 330km from SSR Mining’s Çöpler gold mine and 260km from the Copper Hill development prospect. The Hod Maden licenses cover 3,500 hectares.