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McEwen raising USD$22 million for exploration and ramp at Fox Complex

May 29, 2024

McEwen Mining Inc. has priced a public financing to fund continued exploration and development at the Fox Complex in the Timmins region of Ontario, 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 of 1,533,000 flow-through common shares for aggregate gross proceeds of US$22.0 million (Cdn$30,035,790) is expected to close on June 14, 2024 (the “Closing”) and is subject to customary closing conditions, including approval from the Toronto Stock Exchange (“TSX”) and New York Stock Exchange (“NYSE”). Total proceeds from the Offering net of placement agents’ fees is expected to be US$20.9 million (Cdn$28,534,000).
Cantor Fitzgerald Canada Corporation and Cantor Fitzgerald & Co. is leading a syndicate of placement agents for the Offering.
The Offering is being 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 multijurisdictional disclosure system prospectus (the “Canadian Base Shelf”) in Canada. McEwen will file a final prospectus supplement with the SEC in connection with the Offering and will file a Canadian final prospectus supplement to the Canadian Base Shelf under the “northbound” multi-jurisdictional disclosure system with securities regulatory authorities in each of the provinces of Canada other than Quebec (collectively, the Prospectus Supplement”). The Offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. The Base Shelf Prospectus is, and the Prospectus Supplement will be (within two business days from the date hereof), filed with the SEC and will be available on the SEC’s website at http://www.sec.gov or by visiting the SEDAR+ website at www.sedarplus.com. Copies of the Prospectus Supplement, when available, may also be obtained in the U.S. by contacting Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or by e-mail at prospectus@cantor.com, or in Canada an electronic or paper copy of the Base Shelf Prospectus, the Prospectus Supplement, and any amendment to such documents may be obtained without charge by contacting Cantor Fitzgerald Canada Corporation, Attention: Equity Capital Markets, 181 University Avenue, Suite 1500, Toronto, ON, M5H 3M7 by emailing ecmcanada@cantor.com by providing the contact with an email address or address, as applicable.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles