Local Leaders Hoping for a ‘Business as Usual’ Transition With $275 Million-Plus Acquisition Deal
Rick Langenberg
One of Teller County’s biggest employers, the Cripple Creek & Victor (CC&V) Gold Mine, will once again have a new operator.
The news, though, is not surprising, as Newmont Mine officials have informed elected leaders for months of their plans to divest of their CC&V holdings as part of an overall corporate strategy. Newmont has owned and operated the CC&V Gold Mine for nearly 10 years.
Following months of negotiations and opening up the pathway for a new buyer by Newmont, SSR Mining, which has a headquarters in Denver, has gained the top prize, as the new prospective owner of CC&V. The deal is expected to close in the first quarter of 2025. If the plan progresses, SSR will become the third-largest gold miner in the United States.
The transaction, based on SSR Mining press releases, includes a $100 million upfront cash payment and $175 million in milestone-based payments, for a total package of $275 million. A number of regulatory steps have to occur, as Newmont had previously filed for permits that would enable the operation to extend its mine life and to expand two leach pad facilities. Part of the deal requires that Newmont work with SSR in assuring that these permits are approved by the regulatory bodies, including the Teller County Commissioners.
The proposed sales deal also cited regulatory action in relation to the old Carlton Tunnel.
For the most part, the deal is being touted as a win/win for both parties.
“The acquisition of the Cripple Creek & Victor gold mine represents a rare opportunity to add a high-quality producing asset in a Tier-1 jurisdiction at an accretive valuation,” SSR executive chairman Rod Antal said in a news release. SSR officials contend that the sale will allow their company to increase its annual gold production level by 170,000 ounces, allowing it to obtain an average of producing between 300,000 and 400,000 ounces a year. It has other properties in a variety of locales, including Nevada, Turkey and Argentina.
For Newmont, the sale of the Cripple Creek & Victor Gold Mine is part of their ongoing divestment program aimed at streamlining its portfolio. In essence, Newmont, now ranked as the world’s largest gold mining company, currently has too many gold mining operations and wants to sell certain properties valued as lesser-producing mines, such as CC&V.
The current size of the CC&V operation makes it susceptible to a frequent changes in managerial and ownership outfits, according to business experts and industry insiders.
Reaction Mixed on Pending Ownership Change
Community leaders are reacting to the news with both “here we go again,” and “no real big surprises” sentiments. However, a certain level of community angst hangs over the situation due to the strong involvement by Newmont in many community ventures.
“We are looking forward to working with the new owners,” said Cripple Creek City Administrator Frank Salvato, following the announcement of the sale.
And the reality of the sale is not that surprising. During several community updates in the last six months, Newmont managers outlined the sales process in detail and made it clear that it wanted to find a new buyer by the end of 2024.
CC&V’s general manager, Johan Van Huyssteen, expressed much optimism last summer that a deal could get done by the end of the year. But he outlined a detailed three-phase process and noted that a potential new operator would get vetted extensively. He stressed this wasn’t a sale at any cost deal, and classified CC&V as a profitable company. Even though Newmont wanted to exit the area from a mining and business standpoint, Huyssteen indicated that the CC/V project has much potential. “We believe there is still a lot of gold left up here,” he said in a presentation before the city council in August. He was optimistic about the efforts to extend the operation’s lifeline by at least 10 more years.
Oddly enough, Newmont officials remained mum on the pending deal during their most recent presentation, which occurred on Dec. 4. According to Salvato, Newmont officials at this council meeting, contended they were close to finalizing a sales deal, but declined to release any further details. Several day after their community presentation, the news that a deal had been struck between SSR and Newmont was announced, and reported initially, via a variety of mining publications and related websites.
The big questions being asked by community leaders deals with whether the new company will make as many contributions to area non-profit organizations as Newmont and follow in their footsteps regarding community commitment.
Plus, some wonder if the door will get reopened for underground operations. About four years ago, Newmont appeared interested in possibly exploring this possibility and announced active exploration efforts with state-of-the art technology. But in the last year or so, these plans have appeared to get de-railed. In fact, recent community presentations have focused more on their reclamation efforts and what the landscape will look like when the CC&V operation and the Cresson pit mining officially comes to a close.
The idea of an underground operation has stirred much local interest.
