Ssr Mining Announces the Acquisition of an up to 40% Ownership Interest and Operatorship IN the Hod Maden GOLD-Copper Project Through an Earn-IN Structured Transaction
SSR Mining Inc. PAGE 1
News Release
May 8, 2023
SSR MINING ANNOUNCES THE ACQUISITION OF AN UP TO 40% OWNERSHIP
INTEREST AND OPERATORSHIP IN THE HOD MADEN GOLD-COPPER
PROJECT THROUGH AN EARN-IN STRUCTURED TRANSACTION
Acquisition Of A World-Class Deposit That Fits SSR Mining’s Strategy, Geographic Focus,
And Leverages SSR Mining’s Core Strengths To Create Shareholder Value
Highlights
• SSR Mining to acquire an up to 40% interest and immediate operational control in the Hod Maden gold-copper development project
(“Hod Maden” or the “Project”) in northeastern Türkiye from Lidya Mines
• Aggregate acquisition consideration totals $ 270 million, which includes $120 million in upfront cash payment to acquire a 10%
interest in Hod Maden, followed by $150 million in earn-in structured milestone payments to acquire an additional 30% interest ,
payable between the start of construction and the first anniversary of commercial production 4
• The acquisition of Hod Maden will add one of the highest margin and lowest capital intensity development projects globally to SSR
Mining’s robust portfolio of high-return growth projects and is expected to deliver an estimated all-in after-tax internal rate of return
(“IRR”) in excess of 15% after acquisition costs
• Transaction is accretive to SSR Mining across all meaningful per share valuation metrics, including Net Asset Value, Mineral
Reserves, Mineral Resources, production, operating cash flow, and free cash flow 1
• Based on the Feasibility Study – Technical Report NI 43-101 effective February 28, 2021 (“the 2021 Feasibility Study”) published by
Horizon Copper Corp. 2, Hod Maden features a 13-year mine life averaging (on a 100% basis) approximately 195,000 ounces of gold
equivalent production annually at first quartile co-product AISC of $588/oz, generating $164 million of annual free cash flow and a
36% after-tax internal rate of return (“IRR”) at base case commodity prices of $1,599/oz gold and $3.19/lb copper 3
• Transaction projected to provide SSR Mining with approximately an expected attributable 80,000 gold equivalent ounces and $ 66
million in free cash flow annually (at $1,599/oz gold and $3.19/lb copper) once in production, expected in 2027 3
• Hod Maden is a world-class, high grade and high-margin asset which will further enhance SSR Mining’s free cash flow generation,
which has been a key pillar of the Company’s strategy and sector-leading capital returns program
• The Transaction leverages SSR Mining’s significant experience in Türkiye and its proven project development team that successfully
delivered the Çöpler Sulfide Expansion Project on time and under budget , provides in-country synergies, and builds on a long-
standing and strong joint venture partnership with Lidya Mines in Türkiye
DENVER – SSR Mining Inc. (NASDAQ/TSX: SSRM, ASX: SSR) ( “SSR Mining ” or the “Company ”) is pleased to
announce that it has reached an agreement to acquire from Lidya Mines an up to 40% interest in, and operational
control of , the Hod Maden gold -copper development project, located in northeastern Türkiye (the “Transaction”).
Currently, Lidya Mines and Horizon Copper Corp. (“Horizon”) hold a 70% and 30% ownership interest, respectively,
in Hod Maden.
As consideration for the 40% ownership interest in Hod Maden, SSR Mining’s payments include:
• $120 million upfront cash payment to acquire a 10% interest in the Project paid on closing of the Transaction
on May 8, 2023; and
SSR Mining Inc. PAGE 2
• $150 million in earn-in structured cash milestone payments to acquire an additional 30% interest in the
Project, payable in accordance with an agreed upon sch edule beginning at the start of construction and
ending on the first anniversary of commercial production. 4
With the upfront cash payment made on closing , SSR Mining now serves as sole project operator responsible for
project development, construction and operations. Upon completion of the milestone payments, SSR Mining will own
40% of the Project. 4
Rod Antal, President and CEO of SSR Mining, said, “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. Our due diligence team was complimentary as to the detail and quality
of work completed so far on the Project. Following our review and after discussions with our joint venture partners,
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. We will now spend the next twelve months updating
the existing technical report for these value enhancing opportunities, as well as to account for changes in market
conditions.
We would like to thank our joint venture partners in the Project for their support and cooperation during this process.
We are excited for the outcome , which delivers our stakeholders exposure to what we believe is one of the most
compelling undeveloped gold-copper projects in the world. 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. This is supported by the projected >15% IRR the Project will
generate after acquisition costs.
Our proven project development team will work to advance Hod Maden to a full construction decision in 2024 with a
goal of delivering first production in 2027. The same principles and discipline that enabled our team to deliver the
Çöpler Sulfide Plant project in Türkiye on time and under budget will be applied to Hod Maden to help us maximize
the value of the Project. The Project’s robust economics have the ability to support a project-level finance facility, and
we will build upon the project finance work completed by the joint venture to date as a potential funding opportunity
while limiting SSR Mining’s cash outlay . Overall, this prudently structured transaction presents an opportunity to
further our commitment to low capital intensity growth, strong free cash flow generation and continued robust capital
returns.”
Following completion of the earn-in structured cash milestone payments, SSR Mining will own 40% of the Project,
Lidya Mines will retain a 30% ownership interest and Horizon will own the remaining 30%. Horizon acquired its 30%
ownership in the Project from Sandstorm Gold Ltd. on August 31, 2022 in exchange for a gold stream on production
from a portion of Horizon’s 30% interest and certain other non -cash consideration . SSR Mining’s attributable
production and free cash flow are not encumbered by the gold streaming agreement between Horizon and Sandstorm.
As an upside sharing mechanism with Lidya Mines , if an additional 500,000 ounces of gold equivalent Mineral
Reserves, beyond those currently identified as Mineral Reserves and Mineral Resources (“MRMR”) in the 2021
Feasibility Study, are delineated, SSR Mining will make an $84 million payment to Lidya Mines.
Key regulatory approvals for the Transaction have been obtained and the transaction closed on May 8 th, 2023.
SSR Mining Inc. PAGE 3
Strategic Rationale for the Hod Maden Investment
• Adds a near-term, de-risked growth project to SSR Mining’s robust development pipeline
o On a 100% basis, Hod Maden features total payable gold production of 2,027 thousand ounces gold and
255 million pounds copper over a 13-year mine life 3
o Significant exploration potential across a 3,500-hectare property, including numerous untested soil
geochemistry targets and a geological setting conducive to further exploration targeting through
geophysical surveying
o Project de-risked with several key permits and EIA in place
• Accretive transaction delivering a projected after-tax IRR, post due diligence and acquisition cost, of
>15%
o Incorporating $270 million acquisition cost and inflationary impacts since completion of 2021 Feasibility
Study, the Transaction is expected to deliver an after -tax IRR of >15% to S SR Mining including due
diligence outcomes
▪ Returns analysis incorporates due diligence outcomes and inflationary impacts beyond the $309 million
in pre-production capital originally outlined in 2021 Feasibility Study
o Project stand-alone IRR on a 100% basis of 36%, based on 2021 Feasibility Study 2
o Transaction accretive to SSR Mining’s key per share metrics, including expected increases to Net Asset
Value, attributable Mineral Reserves and Mineral Resources, production, and 2027/2028 operating and
free cash flow
• Fits SSR Mining’s proven strategy of low capital intensity growth in core jurisdictions
o One of the lowest capital intensity undeveloped mining projects in the industry
▪ Approximately $30 million in site establishment costs (at a 100% basis) are expected to be incurred
during 2023, including spend on site access and earthworks
o Opportunities for project level financing, ensuring SSR Mining retains balance sheet flexibility to support
continued investment in capital returns and organic growth opportunities
• Low-cost, high-margin production expected to further bolster the Company’s strong corporate-level free
cash flow generation
o Current life of mine average by-product cash costs of $84/oz and AISC of $334/oz. Life of mine co-product
cash costs of $387/oz and AISC of $588/oz 3
o Hod Maden is expected to generate approximately $164 million in annual free cash flow (on a 100% basis,
at a $1,599/oz gold price and $3.19/lb copper price) once at full production, which is expected in 2027 3
o Opportunity to complement SSR Mining’s delivery of strong free cash flow generation and continued robust
capital returns
o Transaction expected to reduce SSR Mining’s consolidated asset-level life-of-mine AISC 1
• Adds high grade Mineral Reserves and Mineral Resources to SSR Mining platform
o Mineral Reserves of 8,696 thousand tonnes at 8.8 g/t gold and 1.5% copper for 2,452 thousand ounces
gold and 287 million pounds copper 3 (100% basis)
o Measured and Indicated Mineral Resources of 8,143 thousand tonnes at 10.6 g/t Au and 1.8% Cu for 2,768
thousand ounces gold and 330 million pounds copper, inclusive of Mineral Reserves 3 (100% basis)
o Inferred Mineral Resources of 1,342 thousand tonnes at 5 .4 g/t gold and 0.7% copper for 232 thousand
ounces gold and 21 million pounds copper 3 (100% basis)
SSR Mining Inc. PAGE 4
• Transaction builds on our long -standing, value accretive and exclusive partnership with Lidya Mines
and operational expertise in Türkiye
o Immediate o peratorship will allow SSR Mining’s proven project development team , which successfully
delivered the Çöpler Sulfide Plant project on time and under budget , to work to advance Hod Maden to a
full construction decision in 2024
o Potential for meaningful synergies between the Hod Maden project and existing operations at SSR Mining’s
Çöpler gold mine
Overview of the Hod Maden Project
The Hod Maden project is located in northeastern Türkiye within the Eastern Pontides metallogenic belt and
approximately 130 km from the Erzurum airport. The Project is located approximately 330 km from SSR Mining’s
Çöpler gold mine and 26 0 km from the Copper Hill development prospect. The Hod Maden licenses cover
approximately 3,500 hectares , consisting primarily of forestry and private lands. With the successful closing of the
Transaction and the accompanying $120 million upfront cash payment made on May 8, 2023 , the licenses are now
managed under a tri -party ownership structure where SSR Mining will earn-in to own up to 40% of the project and
serve as project operator, while Lidya Mines will own 30% and Horizon will own 30%.
Figure 1. Location of the Hod Maden project relative to SSR Mining’s assets in Türkiye.
SSR Mining Inc. PAGE 5
Figure 2. Hod Maden is a world-class gold-copper project with unparalleled grades within its peer group. 5
Figure 3. Hod Maden’s expected life of mine average co-product AISC are expected to be firmly in the first quartile of the industry
cost curve. 6
SSR Mining Inc. PAGE 6
2021 Feasibility Study Metrics 2
The 2021 Feasibility Study included the following life of mine metrics (all metrics shown on a 100% basis):
• Total production of 2,027,000 ounces gold and 255,000,000 pounds copper over a 13-year life of mine
o Average annual production of 156,000 ounces gold and 19,600,000 pounds copper
o Life of mine revenue split: 80% gold, 20% copper
• Mill design capacity of 800,000 tonnes per annum, with average gold and copper recoveries of 85% and 93%,
respectively
• Average head grade over the life of mine of 8.8 g/t gold and 1.5% copper
• Life of mine average by-product all-in-sustaining cost of $334/oz and co-product all-in-sustaining cost of $588/oz
• At base case metal pricing of $1,599/oz gold and $3.19/lb copper, a $1.05 billion NPV5% with an after-tax IRR of
36% and a two-year payback period from the start of production
Table 1. Summary of Hod Maden’s Mineral Reserves and Mineral Resource as set forth in the 2021 Feasibility Study
2 (all metrics on 100% basis)
Ore Grade Contained
Category (Mt) (g/t Au) (% Cu) (g/t AuEq) (koz Au) (Mlb Cu) (koz AuEq)
Proven & Probable 8.7 8.8 1.5% 11.1 2,452 287 3,114
M&I i 8.1 10.6 1.8% 13.5 2,768 330 3,530
Inferred 1.3 5.4 0.7% 6.5 232 21 280
i M&I inclusive of Mineral Reserves.
2021 Feasibility Report – Life of Mine Production Profile 2
Figure 4. Life of mine payable production profile as set forth in the 2021 Feasibility Study, on a 100% basis.
SSR Mining Inc. PAGE 7
Figure 5. Start of initial earthworks at the Hod Maden site, March 10, 2023.
Conference Call Information
SSR Mining will host a conference call to discuss the Transaction on May 8, 2023, at 5:00 pm EDT. Participants may
dial in using the numbers below.
Toll-free in U.S. and Canada: +1 (800) 319-4610
All other callers: +1 (604) 638-5340
The conference call will be available for playback for two weeks by dialing toll-free in U.S. and Canada: +1 (855) 669-
9658, replay code 0175. All other callers: +1 (412) 317-0088, replay code 0175.
About SSR Mining
SSR Mining Inc. is a leading, free cash flow focused gold company with four producing operations located in the USA,
Türkiye, Canada, and Argentina, combined with a global pipeline of high-quality development and exploration assets.
Over the last three years, the four operating assets combined have produced on average more than 700,000 gold -
equivalent ounces annually. SSR Mining is listed under the tic ker symbol SSRM on the NASDAQ and the TSX, and
SSR on the ASX.
SSR Mining Contacts:
F. Edward Farid, Executive Vice President, Chief Corporate Development Officer
Alex Hunchak, Director, Corporate Development and Investor Relations
SSR Mining Inc.
E-Mail: [email protected]
Phone: +1 (888) 338-0046
To receive SSR Mining’s news releases by e-mail, please register using the SSR Mining website at www.ssrmining.com.
SSR Mining Inc. PAGE 8
Cautionary Note Regarding Forward-Looking Information
Except for statements of historical fact relating to us, certain statements contained in this news release constitute forward-looking
information, future oriented financial information, or financial outlooks (collectively “forward -looking information”) within the
meaning of applicable securities laws. Forward-looking information may be contained in this document and our other public filings.
Forward-looking information relates to statements concerning our outl ook and anticipated events or results and, in some cases,
can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”,
“projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.
Forward-looking information and statements in this news release are based on certain key expectations and assumptions made
by us. Although we believe that the expectations and assumptions on which such forward-looking information and statements are
based are reasonable, undue reliance should not be placed on the forward -looking information and statements because we can
give no assurance that they will prove to be correct. Forward -looking information and statements are subject to various risks and
uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectatio ns
expressed in this news release. The key risks and uncertainties inclu de, but are not limited to: local and global political and
economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in
government policy, government ownership requirements, changes in environm ental, tax and other laws or regulations and the
interpretation thereof; developments with respect to the COVID -19 pandemic, including the duration, severity and scope of the
pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in our reports filed with the
Securities and Exchange Commission on EDGAR and the Canadian securities regulatory authorities on SEDAR.
Forward-looking information and statements in this news release include any statements concerning, among other things: our
investment in the Hod Maden project, including our expectations for the completion of earn-in structured cash milestone payments,
the availability of project financing for our investment, the ability to develop the Project and our ability to lead this effort, the expected
timeframe for production, our expectations for production volumes from the Project, our expected return on investmen t and our
statements related to additional opportunities available at the property; preliminary cost reporting in this document; production,
operating, cost, and capital expenditure guidance; our operational and development targets and catalysts and the im pact of any
suspension on operations; forecasts and outlook, including related to production guidance; timing and expectations regarding the
impact of any interruptions caused on our operations; the results of any metal reconciliations; the ability to discover additional ore;
matters relating to proposed exploration; communications with local stakeholders; maintaining community and government
relations; negotiations of joint ventures; negotiation and completion of transactions; commodity prices; Mineral Resources, Mineral
Reserves, conversion of Mineral Resources, realization of Mineral Reserves, and the existence or realization of Mineral Resource
estimates; the development approach; the timing and amount of future production; the timing of studies, announc ements, and
analysis; the timing of construction and development of proposed mines and process facilities; capital and operating expenditures;
economic conditions; availability of sufficient financing; exploration plans; receipt of regulatory approvals; and any and all other
timing, exploration, development, operational, financial, budgetary, economic, legal, social, environmental, regulatory, and political
matters that may influence or be influenced by future events or conditions.
Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not
limited in any manner to, those disclosed in any other of our filings on EDGAR and SEDAR, and include: the inherent speculative
nature of exploration resu lts; the reliance on the 2021 Feasibility Study reported as public filing by Horizon Copper Corp. (see
endnote 1), the ability to explore; communications with local stakeholders; maintaining community and governmental relations;
status of negotiations of joint ventures; weather conditions at our operations; commodity prices; the ultimate determination of and
realization of Mineral Reserves; existence or realization of Mineral Resources; the development approach; availability and receipt
of required approval s, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement
development plans; access to adequate services and supplies; foreign currency exchange rates; interest rates; access to capit al
markets and associate d cost of funds; availability of a qualified work force; ability to negotiate, finalize, and execute relevant
agreements; lack of social opposition to our mines or facilities; lack of legal challenges with respect to our properties; th e timing
and amount of future production; the ability to meet production, cost, and capital expenditure targets; timing and ability to produce
studies and analyses; capital and operating expenditures; economic conditions; availability of sufficient financing; the ulti mate
ability to mine, process, and sell mineral products on economically favorable terms; and any and all other timing, exploration,
development, operational, financial, budgetary, economic, legal, social, geopolitical, regulatory and political factors that may
influence future events or conditions . While we consider these factors and assumptions to be reasonable based on information
currently available to us, they may prove to be incorrect.
The above list is not exhaustive of the factors that may affect any of the Company’s forward-looking information. You should not
place undue reliance on forward -looking information and statements. Forward -looking information and statements are only
predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-
looking information for a variety of reasons including, but not limited to, risks and uncertainties disclosed in our filings on our
website at www.ssrmining.com, on SEDAR at www.sedar.com, on EDGAR at www.sec.gov and on the ASX at www.asx.com.au
and other unforeseen events or circumstances. Other than as required by law, we do not intend, and undertake no obligation to