According to the agreement, McEwen will acquire all the issued and outstanding securities of Lexam, and Lexam will become a subsidiary of McEwen Mining.
Lexam has a number of gold properties in the Timmins mining camp, including Buffalo Ankerite, located two miles east of Goldcorp’s Dome Mine; Davidson Tisdale, located 5 kilometres along strike from the Hollinger, McIntyre and Coniaurum mines; Fuller, located within 2 kilometres of the Hollinger, McIntyre and Dome Mines; and Paymaster, which is part of the former producing Paymaster Mine.
Lexam has a combined open pit and underground NI 43-101 compliant resource of 0.81 million tonnes in the measured category accounting for 99,100 ounces of gold, 16.18 million tonnes in the indicated category for 1,369,400 ounces of gold, and 10.53 million tonnes in the inferred category for 954,300 ounces of gold.
Rob McEwen, who founded McEwen Mining and is its largest shareholder, also serves as chair of the board at Lexam and owns 27 per cent of its shares.
“Lexam’s assets include multiple advanced exploration projects located in the prolific gold camp of Timmins, Ontario. Lexam’s primary projects are past producers with defined resources and excellent infrastructure,” McEwen said in a release.
“The proposed transaction would give the Lexam shareholders access to McEwen Mining’s technical and financial resources enabling the projects to be advanced towards production. Lexam shareholders will also gain exposure to a growing gold and silver producer, with a diversified portfolio of projects throughout the Americas.”
The arrangement has been approved by the boards of directors for both companies.