FAQ: McEwen Inc. Acquires Canadian Gold Corp. in All-Stock Deal

What is the main topic of this announcement?

The announcement details McEwen Inc.’s acquisition of Canadian Gold Corp. in an all-stock deal, including the transfer of Canadian Gold’s key asset, the Tartan Mine.

Why is this acquisition significant?

This acquisition is significant because it adds the high-grade Tartan Mine to McEwen’s portfolio, offering potential to restart production within 24 to 36 months and enhancing shareholder value through increased liquidity and access to McEwen’s resources.

How does the all-stock transaction work?

Canadian Gold shareholders will receive 0.0225 McEwen shares per Canadian Gold share, representing an implied price of C$0.35 and a 26% premium to the 30-day VWAP, resulting in them owning approximately 8.2% of the combined company post-transaction.

Who is involved in this deal?

McEwen Inc. and Canadian Gold Corp. are the primary parties involved, with McEwen Chairman Rob McEwen and Canadian Gold Chairman Peter Shippen playing key roles in the transaction.

When is this acquisition expected to take effect?

The announcement does not specify an exact closing date, but mentions the potential to restart production at the Tartan Mine within 24 to 36 months post-acquisition.

Where is the Tartan Mine located?

The Tartan Mine is located in Manitoba, Canada, and is noted for its high-grade gold production, existing infrastructure, and strong exploration upside.

What are the benefits of this acquisition for Canadian Gold shareholders?

Canadian Gold shareholders will benefit from enhanced liquidity, a 26% premium on their shares, and access to McEwen’s financial and technical resources, owning about 8.2% of the combined company post-transaction.

What other assets does McEwen Inc. own?

McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico, and Argentina, and owns approximately 47.7% of McEwen Copper, which is developing the Los Azules copper project in Argentina.

How can I learn more about McEwen Inc.?

For more information about McEwen Inc., visit their official website at www.McEwenMining.com or check the latest news and updates in the company’s newsroom at https://ibn.fm/MUX.