McEwen Inc. to Acquire Canadian Gold Corp. in Strategic All-Stock Deal

McEwen Inc. (NYSE: MUX) (TSX: MUX) has entered into a binding letter of intent to acquire Canadian Gold Corp. (TSX-V: CGC) in an all-stock deal, marking a significant expansion of its mining assets. Under the terms of the agreement, Canadian Gold shareholders will receive 0.0225 McEwen shares for each share held, valuing the deal at an implied price of C$0.35 per share, which represents a 26% premium over the 30-day volume-weighted average price (VWAP) of Canadian Gold shares. Post-transaction, Canadian Gold shareholders are expected to own approximately 8.2% of the combined entity.

The acquisition brings the Tartan Mine, a high-grade former producer located in Manitoba, into McEwen's portfolio. The Tartan Mine is noted for its existing infrastructure and significant exploration potential. Additionally, Canadian Gold's assets include the Hammond Reef and Malartic South properties in Ontario and Quebec, further diversifying McEwen's asset base. Rob McEwen, Chairman of McEwen Inc., highlighted the strategic fit of the Tartan Mine with the company's Fox Complex and emphasized Manitoba's favorable mining jurisdiction. The deal is seen as a step towards potentially restarting production at the Tartan Mine within 24 to 36 months.

Peter Shippen, Chairman of Canadian Gold, expressed confidence in the transaction's benefits for shareholders, citing enhanced liquidity and access to McEwen's financial and technical resources as key advantages. This acquisition underscores McEwen's commitment to growing its asset base and improving productivity, with the ultimate goal of increasing shareholder value. The Tartan Mine's addition is particularly noteworthy given its high-grade deposits and the potential for rapid development, positioning McEwen for future growth in the gold mining sector.

For further details on the transaction, interested parties can refer to the official press release. This strategic move by McEwen Inc. not only strengthens its position in the mining industry but also offers Canadian Gold shareholders a premium on their investment and a stake in a larger, more diversified mining company.