Silver Standard Concludes Valmy Property Acquisition
Silver Standard Resources Inc.SSRI announced that it has closed the acquisition of Valmy Property, contiguous with its Marigold mine in Nevada, for $11.5 million in cash from Newmont Mining Corporation NEM . This transaction was announced in Aug 2015.
The Valmy Property is a 2,844 hectare land package surrounding parts of the Marigold mine to the east, south and west.
Silver Standard will secure formerly operating open pits with exploration potential near Marigold's Mackay pit. This will aid in creating value for shareholders at Marigold. This acquisition also represents an opportunity for Silver Standard to increase resources and add operating flexibility at Marigold.
Under the deal, Silver Standard needs to provide financial assurances to the environmental regulatory authorities with respect to the Valmy Property's long-term environmental and reclamation obligations.
In Aug 2015, Silver Standard released its second-quarter 2015 results. The company raised its gold production guidance at the Marigold mine for 2015 to the range of 195,000 ounces to 205,000 ounces, a 19% increase from its earlier gold production outlook of 160,000 ounces to 175,000 ounces.
Capital expenditure guidance for the Marigold mine was rasied to $25 million from $20 million due to the additional spend in exploration and assay program expected in the second half of 2015.
Silver Standard's shares closed unchanged at $6.67 last Friday. The stock is up roughly 26% this year.
Silver Standard currently carries a Zacks Rank #5 (Strong Sell).
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