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McEwen Mining to raise $15M for Timmins-area exploration

McEwen acquired Black Fox complex in 2017
McEwen Mining is undertaking a private placement to raise $15 million for exploration activities at its Timmins-area Black Fox complex. (Supplied photo)

McEwen Mining is embarking on a fundraising campaign to raise capital for exploration at its Timmins-area properties.

On Dec. 5, the company announced it would issue two per cent of its outstanding shares, at US$2.26 per share, to raise $15 million in funds. Proceeds will go toward its 2019 Timmins-area exploration program.

“We want to build on the exploration success of this year’s effort, where we increased our resources and generated a number of exciting exploration targets,” Rob McEwen, company chair and chief owner said in a news release.

“These properties are located along a prolific geological trend in one of the world’s great gold districts.”

Through the bought deal private placement, 6,634,000 flow-through common shares will be offered at US$2.26 per share by Cantor Fitzgerald Canada Corp as sole bookrunner. The offering price represents a 26 per cent premium over the closing price of McEwen common shares on the TSX as of Dec. 5.

The offering is expected to close by Dec. 21.

McEwen has a total of 337 million shares outstanding. Rob McEwen owns 24 per cent of the shares. Subsequent to the closing of the Offering the shares outstanding will increase to 344 million.

In Timmins, McEwen owns and operates the Black Fox complex in Black River-Matheson, just east of Timmins, which is comprised of the Black Fox Mine, and the Froome, Grey Fox and Tamarack deposits, along with the Stock Mill and the former Stock Mine.

McEwen additionally owns the San José mine in Santa Cruz, Argentina (49 per cent interest); the Fenix Project in Mexico; the Gold Bar mine in Nevada, currently under construction; and the Los Azules copper project in Argentina, advancing towards development.