McEwen Inc. Announces Acquisition of Canadian Gold Corp. to Expand Mining Portfolio
TL;DR
McEwen Mining acquires Canadian Gold Corp, offering shareholders a 26% premium and access to high-grade assets like the Tartan Mine, enhancing their investment portfolio.
McEwen Mining will issue 0.0225 shares per Canadian Gold share, valuing the deal at C$0.35 per share, expanding its asset base with the Tartan Mine.
This merger leverages McEwen's resources to potentially restart production at the Tartan Mine, contributing to local economies and sustainable mining practices.
Discover how McEwen's acquisition of Canadian Gold Corp could revive the Tartan Mine, a high-grade former producer, within 24 to 36 months.
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McEwen Inc. (NYSE: MUX) (TSX: MUX) has taken a significant step to bolster its mining portfolio by entering into a binding letter of intent to acquire Canadian Gold Corp. (TSX-V: CGC). The all-stock transaction offers Canadian Gold shareholders a 26% premium based on the 30-day volume-weighted average price (VWAP), underscoring the strategic value McEwen places on this acquisition. The deal is poised to add the high-grade Tartan Mine in Manitoba to McEwen's assets, alongside other properties in Ontario and Quebec, with the potential to restart production within 24 to 36 months.
The acquisition, valued at an implied price of C$0.35 per share, will result in Canadian Gold shareholders owning approximately 8.2% of the combined company. Rob McEwen, Chairman of McEwen Inc., pointed to the Tartan Mine's similarities to the company's Fox Complex and Manitoba's favorable mining jurisdiction as pivotal factors driving the deal. This move not only expands McEwen's footprint in the mining sector but also leverages the company's expertise and resources to unlock the potential of the newly acquired assets.
Peter Shippen, Chairman of Canadian Gold Corp., highlighted the transaction's advantages, including improved liquidity for shareholders and access to McEwen's robust financial and technical resources. This acquisition represents a strategic alignment of interests, aiming to maximize value for shareholders of both companies while positioning the combined entity for growth in the competitive mining industry. For more information on this significant development, visit https://ibn.fm/xw04x.
Curated from InvestorBrandNetwork (IBN)
