SSR Mining (TSX, NASDAQ: SSRM) has sold its approximate 8.5% stake in SilverCrest Metals (TSX: SIL) as it focuses on completing the previously announced merger acquisition of Alacer Gold (TSX: ASR, ASX: AQG).
In an on-market transaction, SSR has divested all 9 million of its SilverCrest common shares at a price of C$10.06 per share for gross proceeds of approximately C$90 million. This represents a pre-tax gain of C$55 million on its investment of C$35 million over an 18-month period, SSR president and CEO Paul Benson said.
SilverCrest is currently advancing its Las Chispas gold-silver project in Mexico, where mining activities is expected to resume shortly.
Meanwhile, SSR said recent drilling at its Marigold mine in Nevada and Seabee Gold Operation in Saskatchewan both yielded positive results indicating potential increases to mineral resources.
Drilling on greenfield targets also yielded three resource grade intercepts at the Fisher property next to Seabee.
In the first quarter, SSR achieved total production of 107,331 gold-equivalent ounces at cash costs of $824 per payable ounce, resulting in positive income from mine operations totalling $44.8 million and adjusted attributable net income of $38.8 million.
Shares of SSR Mining jumped 11.6% on Friday morning to a 10-year high of C$29.36 per share. SilverCrest’s stock was also up 11.3% to almost a 52-week high. The companies have market capitalizations of C$3.6 billion and C$1.4 billion, respectively.