Golden Lake up 80% on McEwen takeover proposal
McEwen Mining Inc. [MUX-TSX, NYSE] has announced a definitive deal to acquire all the issued and outstanding shares of Golden Lake Exploration Inc. [CSE-GLM, GOLXF-OTC] by way of a plan of arrangement.
Golden Lake shares rallied on the news, rising 80% or $0.06 to 13.5 cents. The shares previously traded in a 52-week range of $0.09 and $0.03. McEwen shares eased 2.5% or $1.00 to $38.47.
Golden Lake’s principal asset is the 100%-owned Jewel Ridge and Jewel Ridge West projects located adjacent to McEwen’s Windfall and Lookout Mountain discoveries, part of the Gold Bar Mine Complex, located in the Eureka Mining District of Nevada.
Gold Bar was expected to produce 40,000 to 45,000 ounces of gold in 2025 at an all-in sustaining cost of US$1,800 an ounce.
Historical drilling highlights from Jewel Ridge include 2.20 g/t gold over 28.96 metres, 1.24 g/t gold over 56.39 metres, and 2.37 g/t gold over 67.57 metres. These holes are located north of McEwen’s Windfall deposit where a recent drill hole returned 5.55 g/t gold over 44.2 metres. Incorporating Golden Lake’s projects into the Gold Bar Mine Complex will help continue the mine’s transformation into a long-life operation by investing in exploration and leveraging current McEwen infrastructure.
Under the terms of the proposed transaction, each Golden Lake common share would entitle the holder to receive 0.003876 McEwen common shares as is equal to $0.12 divided by the volume weighted average trading price of the McEwen shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on and including the trading day of January 26, 2026. The exchange ratio represents an implied offer price of $0.12 per Golden Lake share. That represents a premiuim of 60% to the 20-day volume weighted average price of the Golden Lake shares at the close of trading on January 26, 2026.
To be effective, the proposed transaction will require the approval of 66 and 2/3 of the votes cast by shareholders, warrant holders, and noteholders of Golden Lake at a special meeting in March.
The orebodies in the Eureka mining district were among the first of the large replacement deposits in limestone or dolomite (now referred to as Carbonate Replacement Deposits or CRDs) to be mined extensively in the western U.S. The Ruby Hill area yielded by far the greater part of the production from the Eureka district.
The Jewel Ridge project is located on the south end of Nevada’s prolific Battle Mountain – Eureka trend, strategically along strike to Barrick Mining Corp.’s [ABX-TSX, B-NYSE] former two million gold ounces Archimedes/Ruby Hill mine to the north.
Jewel Ridge consists of 96 unpatented lode mining claims and 30 patented claims covering approximately 728 hectares. The property hosts over a dozen past producing mines and prospects over a 4.0-kilometre strike on the Dunderberg-Windfall Belt, most worked in the late 1800s for gold, silver, and lead from shallow oxide deposits.