(MENAFN- ABN Newswire) Toronto, Dec 2, 2017 AEST (ABN Newswire) - McEwen Mining Inc. () () ("McEwen") is pleased to announce a strategic financing to accelerate exploration at our newly acquired properties near Timmins, Ontario.
"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.
The financing consists of a US$10,000,000 (Cdn$12,880,000) bought deal private placement offering (the "Offering") of 4,000,000 flow-through common shares (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) priced at US$2.50 (Cdn$3.22) per flow-through common share (the "Offering Price") led by Cantor Fitzgerald Canada Corporation as sole bookrunner and including BMO Capital Markets, H.C. Wainwright & Co., LLC and GMP Securities L.P. (the "Underwriters"). The Offering Price represents a premium of 24.4% over the closing price of McEwen common shares on the NYSE as of November 30, 2017. The Offering is expected to close on or before December 19, 2017 (the "Closing") and is subject to customary closing conditions, including approval from the TSX and NYSE.
McEwen intends to use the proceeds of this Offering exclusively for generative exploration activities on its properties in the Timmins region.
Planned Exploration Program Highlights
Since completing the purchase of the Black Fox Complex in early October, we are increasing our understanding of the great opportunities to grow existing resources and to make new and exciting mineral discoveries in the Timmins region. We see an opportunity to accelerate our exploration efforts by committing US$10 million in 2018 to conceptual and early stage targets, predominantly on the Black For property.
At the Black Fox mine deep exploration drilling below the bottom of the know mineralization is a high priority. Many mines in the region typically extend to depths of 1,200-1,600 meters below surface, while Black Fox currently hosts resources to a depth of only 880 meters. A program of deep directional exploration drilling from surface is currently underway. Lateral exploration to the northwest and southeast of the mine along the same geologic structure is also proposed, based on good geological and geophysical evidence to support the targets.
Tamarack is a zone rich in gold and zinc-lead-silver massive sulfide mineralization proximal to the Black Fox mine.
Other important target areas on the Black Fox property include the areas around the Froome and Grey Fox deposits, which are located 800 m to the West and 4 km to the South of the Black Fox mine, respectively. Froome currently has an underground indicated gold resource of 151,000 ounces at a grade of 5.5 gpt. Grey Fox currently has an open pit indicated gold resource of 345,000 ounces at a grade of 3.6 gpt, and an additional underground indicated gold resource of 323,000 ounces at a grade of 5.9 gpt.
About McEwen Mining Inc
() () has the goal to qualify for inclusion in the S & P 500 Index by creating a profitable gold and silver producer focused in the Americas. McEwen's principal assets consist of the San Jose mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Black Fox mine in Timmins, Canada, the Gold Bar project in Nevada, and the Los Azules copper project in Argentina.
McEwen has a total of 333 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 24% of McEwen.
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