McEwen Mining secures funding to expand Fox Complex
(Kitco News) - McEwen Mining (NYSE: MUX; TSX: MUX) today announced an oversubscribed registered direct offering with several existing and new institutional investors for the sale of an aggregate of 30,000,000 shares of common stock at a purchase price of $1.05 per share.
The company said that this offering completes the funding required to bring the Froome deposit into production later this year and strengthens McEwen’s balance sheet and working capital position.
“Froome is our production bridge to the future growth of the Fox Complex, where we see potential for higher gold production, lower cost per ounce and a longer mine life,” said Chairman and Chief Owner Rob McEwen.
The offering is expected to close on February 9, 2021 and is subject to customary closing conditions, including approvals from the TSX and the NYSE.
The Fox Complex is located in the well-established Timmins Gold Mining Camp in Northern Ontario, Canada. At current gold resources of 2.96 million ounces Measured & Indicated & 1.15 million ounces Inferred, the Fox Complex represents a large gold resource base in the Timmins district.
McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina.