Key Takeaways:
SSR Mining Inc. will exit its direct interest in the Hod Maden project in Türkiye, selling its 20% stake to partner Lidya Mines for a 4% net smelter return royalty in a deal that overhauls the project's ownership and operational structure.
"Hod Maden is a high-grade and high-margin gold-copper development project and we are pleased to continue our participation in such a way that preserves the value of our ownership while bringing our overall interest more in line with our core royalty and streaming business," Bill Heissenbuttel, President and CEO of Royal Gold, said in a statement.
The transaction will increase Lidya Mines’ ownership to 85%, making the Turkish firm the sole operator. Concurrent with SSR’s sale, Royal Gold Inc. will reduce its own equity in the project to 15% from 30%, receiving a new 2.5% NSR royalty. The deal also grants Royal Gold a call option to acquire half of SSR Mining’s royalty for $160 million, exercisable for 12 months after commercial production begins.
This sale completes SSR Mining’s strategic shift to an Americas-focused platform, removing all future funding obligations which will now be assumed by Lidya and Royal Gold. The deal de-risks SSR's balance sheet by swapping capital and operational exposure for a long-life royalty stream, adding to its existing portfolio which includes royalties on projects owned by Highlander Silver and Endeavour Silver.
Under the agreement, Royal Gold will fund the next $70 million of project costs, after which Lidya will contribute $397 million. Any further funding will be split on a 15/85 basis between the two remaining equity partners. SSR Mining, which has invested approximately $243 million to date, will provide no further capital.
Royal Gold also secured significant influence over the new royalty, holding a right of first refusal on any potential sale by SSR Mining and a consent right on any sale before January 1, 2028.
The transactions are expected to close in the third quarter of 2026, subject to regulatory approval from the Turkish General Directorate of Mining and Petroleum Affairs.
The Hod Maden project, located in northeastern Türkiye, is a high-grade underground gold-copper development. A January 2026 technical report outlined a 13-year mine life with production of 1.6 million ounces of gold and 209 million pounds of copper.
The report estimated all-in-sustaining costs of $590 per ounce of payable gold, highlighting its high-margin potential. The total private royalty burden on the project will now increase to 8.5%, a level not expected to materially impact the mine plan due to the deposit's high-grade nature. Lidya Mines, the mining arm of Turkish conglomerate Çalık Holding, will now oversee development and operations.
This article is for informational purposes only and does not constitute investment advice.
