McEwen Mining is raising funds to undertake an exploration program at its Timmins gold property.
In a Dec. 1 news release, the company announced the financing plan consists of a US$10-million bought deal private placement offering of four million flow-through common shares.
The company said the financing would be used exclusively for a 2018 exploration program, primarily at the Black Fox property.
“This significant commitment to exploration in 2018 is founded on our conviction that excellent exploration potential exist on our properties in the Timmins region,” said Rob McEwen, chairman and chief owner, in the release.
Deep direction exploration drilling is currently underway at Black Fox, which currently hosts resources to a depth of 880 metres. The company proposes “lateral exploration to the northwest and southeast of the mine along the same geologic structure…based on good geological and geophysical evidence to support the targets.”
Other targets include areas around the Froome and Grey Fox deposits, located 800 metres to the west and four kilometres to the south of Black Fox Mine.
Froome currently has an underground indicated gold resource of 151,000 ounces at a grade of 5.5 grams per tonne. Grey Fox currently has an open pit indicated gold resource of 345,000 ounces at a grade of 3.6 grams per tonne, and an additional underground indicated gold resource of 323,000 ounces at a grade of 5.9 grams per tonne.
McEwen Mining acquired the Black Fox complex — located in the Township of Black River-Matheson, just east of Timmins — from Primero Mining in October for $35 million.
