SSR and Alacer merger makes sense

The SSR meeting and Alacer meeting will be held online on July 10, in a virtual-only format.

As part of its SSR Mining analysis, ISS stated that the transaction would result in the creation of a diversified gold producer with an experienced management team.

“Given these factors and expected synergies by combining the two companies, absence of significant governance concerns and the ability to respond to superior proposals, shareholder approval of this resolution is warranted,” it stated.

Furthermore, in its Alacer analysis, ISS said that the combined company would emerge with a strengthened balance sheet and through ownership of SSR common shares, Alacer shareholders would continue to participate in the opportunities associated with the combined company`s assets and properties.

In addition, Glass Lewis reiterated the positive ISS recommendation as it found "the proposed arrangement both strategically and financially compelling and structured in a reasonable manner for SSR shareholders”.

“We believe the proposed transaction represents the best path forward to enhance shareholder value at this time.”

SSR and Alacer announced their at-market merger of equals in May. Shareholders in TSX- and ASX-listed Alacer would receive 0.3246 SSR Mining shares for each Alacer share held, implying a consideration of C$8.19 a common share, valuing Alacer at C$2.41-billion.

The combined entity would continue as SSR Mining, with headquarters in Denver, Colorado, and corporate head offices in Vancouver, British Columbia.

The new SSR would have a three-year average yearly production profile of about 780 000 oz of gold equivalent at an all-in sustaining cost of $900/oz.

At closing, SSR Mining and Alacer shareholders would collectively own about 57% and 43% of SSR Mining, respectively, on an issued and outstanding share basis.