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McEwen Mining Inc.

McEwen Mining Announces Flow-Through Financing

Dec 17, 2020
TORONTO, Dec. 17, 2020 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to announce a strategic financing (the “Offering”) to further our successful exploration program at our properties in the Timmins region of Ontario.
 
The Company intends to issue 6,136,000 common shares (CDN$10,001,680) of the Corporation issued on a flow-through basis (the “FT Shares”) at a price per share of CDN $1.63, with an option to increase the Offering by 920,400 FT Shares (CDN$1,500,252) exercisable at any time up to two business days prior to the closing of the Offering by way of a non-brokered private placement. The Offering Price represents a premium of 22% over the closing price of McEwen Mining common shares on the TSX as of December 16, 2020.
 
The gross proceeds from the sale of FT Shares will be used for expenditures which qualify as Canadian Exploration Expenses (CEE) within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE expenditures with an effective date of no later than December 31, 2020.
 
The Common Shares issued will be subject to a four month hold period. The Offering is expected to close on or before December 30, 2020 and is subject to customary closing conditions, including approval from the TSX and NYSE.
 
This press release is not an offer of common shares for sale in the United States. The common shares may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the US. Securities Act of 1933, as amended (the "U.S. Securities Act") and applicable U.S. state securities laws. McEwen will not make any public offering of the securities in the United States. The common shares have not been and will not be registered under the U.S. Securities Act, or any state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
 
ABOUT MCEWEN MINING
 
McEwen Mining is a diversified gold and silver producer and explorer with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina. McEwen Mining’s goal is to create a profitable gold and silver producer focused in the Americas.
 
McEwen Mining has approximately 409 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 20% of the shares.
 

Source: https://www.mcewenmining.com/investor-relations/press-releases/press-release-details/2020/McEwen-Mining-Announces-Flow-Through-Financing-3c226e5cc/default.aspx

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