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McEwen Mining closes Flow-Through Financing for Timmins growth

Jun 17, 2024

McEwen Mining Inc. has closed the previously announced public financing for US$22.0 million (Cdn$30.0 million) to fund ongoing exploration and development at the Fox Complex in the Timmins region, primarily focused on exploration drilling and the development of an underground access ramp from surface to mine the gold resources of Stock East and West. This represents the next area of production growth at the Fox Complex.
The proceeds of this financing will be used exclusively for qualifying Canadian Exploration Expenses (within the meaning of subsection 66.1(6) of the Income Tax Act (Canada)) (“CEE”) and Canadian Development Expenses (within the meaning of subsection 66.2(5) of the Income Tax Act (Canada)) (“CDE”), including:
Part 1 (CEE) of the financing consists of a US$10.0 million(Cdn$13,650,890) offering of 643,000 flow-through common shares at a price of US$15.56 (Cdn$21.23); and
Part 2 (CDE) of the financing consists of a US$12.0 million(Cdn$16,384,900) offering of 890,000 flow-through common shares at a price of US$13.49 (Cdn$18.41),
(Part 1 (CEE) and Part 2 (CDE) together being the “Offering”).
The Offering consisted of 1,533,000 flow-through common shares at a blended average price of US$14.36 (Cdn$19.59), a 19% premium to the closing price on May 27th, for aggregate gross proceeds of US$22.0 million (Cdn$30.0 million). Total proceeds from the Offering net of placement agents’ fees was approximately US$20.8 million (Cdn$28.5 million).
Cantor Fitzgerald Canada Corporation and Cantor Fitzgerald & Co. led a syndicate of placement agents for the Offering, which included Roth Capital Partners, LLC, A.G.P./Alliance Global Partners, and H.C. Wainwright & Co., LLC. PearTree Securities Inc. structured the flow-through donation placement.
The Offering was made pursuant to a shelf registration statement on Form S-3 (File No. 333- 275324) that was previously filed by McEwen in the United States and subsequently declared effective by the Securities and Exchange Commission (“SEC”) on January 2, 2024 and also pursuant to a preliminary and final multi-jurisdictional disclosure system prospectus (the “Canadian Base Shelf”) in Canada. McEwen filed a final prospectus supplement with the SEC in connection with the Offering and a Canadian final prospectus supplement to the Canadian Base Shelf under the “northbound” multi-jurisdictional disclosure system with securities regulatory authorities in some of the provinces of Canada other than Quebec (collectively, the “Prospectus Supplement”). The Offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. 

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