McEwen Mining raising $10 million for Timmins exploration

Black Fox Complex near Timmins, Ontario.

Share this article

McEwen Mining Inc. [MUX-TSX, NYSE] said Thursday December 17 that it is raising $10 million from a flow-through financing to fund exploration on properties in the Timmins, Ontario, region.

The company said it intends to issue 6.13 million common shares on a flow-through basis at $1.63 per share, with an option to increase the offering, which is being made by way of a non-brokered private placement, to 920,400 flow-through shares, potentially adding another $1.5 million to the proceeds. The option is exercisable at any time up to two business days prior to closing.

The company said the offering price represents a premium of 22% over the closing price of McEwen Mining common shares on December 16, 2020.

On Thursday, McEwen shares were down 1.5% or $0.02 to $1.32. The shares are currently trading in a 52-week range of $2.02 and 76 cents.

McEwen is a gold and silver producer with a focus on the Americas, including the U.S., Canada, Mexico and Argentina.

The company produced 23,100 ounces of gold and 575,000 ounces of silver (30,400 gold equivalent ounce) during the third quarter of 2020, at an average gold:silver price ratio of 79:1.

Production rebounded due to the restart of all four of its operations which were temporarily suspended as a result of the COVID-19 pandemic.

McEwen is working to complete a preliminary economic assessment (PEA) for its Grey Fox – Black Fox, Stock and Timmins resources utilizing the company’s existing milling capacity. Known as the Fox Complex, those deposits host nearly 3.0 million gold ounces of measured and indicated resources, plus an additional 1.0 million ounces of inferred resources.

The objective of the PEA is to develop a plan for the Fox Complex that would see it grow to an annual production rate of 100,000-150,000 ounces of gold at a cash cost of US$800/oz and an all-in-sustaining cost of US$1,050/oz over a lifespan of 10 years. Production growth is expected to start ramping up in 2022.

The PEA was expected to be completed in the fourth quarter of 2020, and will identify the optimal business case on which to complete a feasibility study in 2021.

McEwen Mining has approximately 409 million shares outstanding. Rob McEwen, the company’s Chairman and Chief Owner, holds 20% of the shares.


Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't miss the

NEWSLETTER

Exclusive editorial

Breaking News

Quality Company Coverage

Expert Writers

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Resource World Magazine will use the information you provide on this form to be in touch with you and to provide updates and marketing.