McEwen Inc. eyes Canadian Gold acquisition, signs letter of intent

McEwen Mining Inc. [MUX-TSX, NYSE] and Canadian Gold Corp. [CGC-TSXV] said Monday they have entered into a binding letter of intent in connection with a proposed transaction that would see McEwen acquiring all the issued and outstanding shares of Canadian Gold by way of a plan of arrangement.

If the plan is completed, Canadian Gold would become a wholly-owned subsidiary of McEwen. Under the terms of the proposed transaction, each Canadian Gold share would entitle its holder ro receive 0.0225 of a McEwen common share. The exchange ration represents an offer price of 35 cents per Canadian Gold share, marking a premium of 36% to the 30-day volume weighted average price of Canadian Gold shares at the market close on July 25, 2025. Following completion of the transaction, existing Canadian Gold shareholders will own approximately 8.2% of the combined company resulting from the proposed transaction.

The companies said the LOI provides for the parties to enter into a definitive agreement, setting out the final terms and conditions of the proposed transaction. Upon execution of the arrangement agreement, the companies will issue a subsequent news release containing any additional terms of the proposed transaction.

On Monday, Canadian Gold shares, the shares rose 3.28% or $0.01 to 31.5 cents. They trade in a 52-week range of 34 cents and 12.5 cents. McEwen eased 5.2% or 81 cents to $14.76. The shares trade in a 52-week range of $16.04 and $9.13.

Following completion of the transaction, existing Canadian Gold shareholders will own approximately 8.2% of the combined company resulting from the Proposed Transaction.

Canadian Gold’s portfolio includes the Tartan Mine, a former producing mine with significant infrastructure close to the town of Flin Flon, Manitoba. It has access to a skilled workforce, inexpensive renewable power and a supportive mining and taxation environment.

The Tartan mine produced 47,000 ounces of gold between 1987 and 1989. Recently, Canadian Gold announced two transactions that expanded the strike length of Tartan from 8.0 kilometres to 29.5 kilometres along a key regional shear zone. The expanded property has the benefit of leveraging the infrastructure of the Tartan mine that includes a ramp to 320 metres below surface, the footprint of the former 450 tonne per day mill, road access and power to the mine site.

McEwen said the benefits of the proposed transaction include the addition of an increasingly rare, high-grade former producing mine in Canada with existing infrastructure. The company said proposed development of the Tartan Mine has many similarities to McEwen’s Fox Complex near Timmins, Ont., including ramp access, mining method and proposed process plant design. McEwen said the proposed deal enhances McEwen’s development and production pipeline with the potential to re-commence production at the Tartan Mine within 24 to 36 months. It said exploration potential has been enhanced by Canadian Gold’s optioning of the adjoining Tartan West property.