Vancouver's Silver Standard Resources Inc. (TSX:SSO) will purchase the Marigold Mine, a long-producing deposit owned by Goldcorp Inc. (TSX:G) and Barrick Gold Corp. (TSX:ABX), for $275 million.
According to a Silver Standard release, the company will pay for the mine in cash. The sale is expected to close in April.
Marigold, located in Humboldt County, Nev., has been in constant production since 1988. In 2013, the mine produced 162,000 ounces of gold. For 2014, the mine is forecasted to produce between 142,000 and 150,000 ounces.
Goldcorp, operators of the mine, own a 66.7% stake in Marigold. Barrick owns the remaining 33.3%.
"The acquisition of Marigold accomplishes our strategic goal of adding an operating mine in a well-established, low-risk mining jurisdiction," said John Smith, Silver Standard president and CEO, in a statement.
"We are excited to welcome our new team members as Marigold upgrades our portfolio quality whilst leveraging our open-pit mine expertise and financial capacity."
Upon completion of the sale, Silver Standard plans to draft a new mine plan targeting "higher grade and with the potential to reduce mining costs."
About 360 people currently work at Marigold.
Since Silver Standard's announcement of the deal, the company's stock price has jumped $0.45 to $8.45, still down from its 52-week high of $12.27, but up from its 52-week low of $5.38.
@SeanKolenko
