McEwen Mining to Acquire Canadian Gold Corp in Strategic All-Stock Transaction

McEwen Inc. has entered into a binding letter of intent to acquire Canadian Gold Corp. in an all-stock transaction that offers Canadian Gold shareholders a 26% premium based on the 30-day volume-weighted average price. This strategic acquisition brings the high-grade Tartan Mine in Manitoba into McEwen's asset portfolio, alongside additional properties in Ontario and Quebec, with the potential to restart production within 24 to 36 months. The transaction represents a significant consolidation in the Canadian mining sector and provides immediate value to Canadian Gold shareholders through the premium offer.

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. This ownership structure allows Canadian Gold investors to participate in the future growth potential of the enlarged entity while benefiting from McEwen's established operational expertise and financial resources. The deal structure eliminates the need for cash consideration, preserving McEwen's financial flexibility while expanding its asset base in mining-friendly jurisdictions across Canada.

McEwen Chairman Rob McEwen highlighted the strategic rationale behind the acquisition, noting the Tartan Mine's geological similarities to the company's existing Fox Complex operations. He also emphasized Manitoba's reputation as a favorable mining jurisdiction with established infrastructure and supportive regulatory frameworks. The combination of these factors makes the Tartan Mine an attractive addition to McEwen's portfolio, with the potential for efficient integration and development. The transaction aligns with McEwen's strategy of acquiring high-quality assets in proven mining districts.

Canadian Gold Chairman Peter Shippen emphasized the transaction's benefits for his company's shareholders, including enhanced liquidity through listing on major exchanges and access to McEwen's substantial financial and technical resources. The acquisition provides Canadian Gold shareholders with exposure to a larger, more diversified mining company with multiple operating assets and development projects. For additional details on the acquisition terms and strategic implications, visit https://ibn.fm/xw04x. The transaction represents a significant milestone for both companies and demonstrates continued consolidation activity within the gold mining sector as companies seek to build scale and operational efficiency.