McEwen Mining Announces Bought Deal of $40.5 Million
September 18 2017 - 5:03PM
McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) (“McEwen”)
is pleased to announce that it has entered into an underwriting
agreement with a syndicate of underwriters (the “Underwriters”),
pursuant to which the Underwriters have agreed to purchase, on a
bought deal underwritten basis, 18,000,000 shares of its common
stock and warrants to purchase up to 9,000,000 shares of its common
stock, at a price of $2.25 per share and associated one-half common
stock warrant, for gross proceeds, before deducting underwriting
commissions and estimated offering expenses, of $40.5 million. The
warrants will have a term of 53 weeks from issue date and an
exercise price of $2.70 per whole share. In addition, McEwen has
granted the Underwriters a 30-day option to purchase up to an
additional 2,700,000 shares of common stock and/or warrants to
purchase up to 1,350,000 shares of common stock. The offering is
expected to close on or about September 22, 2017, subject to
customary closing conditions.
Cantor Fitzgerald Canada Corporation (“CFCC”) is
acting as the sole book-running manager for the offering. H.C.
Wainwright & Co., LLC is acting as the lead manager for the
offering.
McEwen intends to use the net proceeds of the
offering to fund the previously announced acquisition of the Black
Fox Complex and associated assets and liabilities, an operating
precious metal mine, associated claims and equipment located in the
Township of Black River-Matheson, Ontario, Canada, and the Grey Fox
Property, an exploration property located near the Black Fox
Complex, and for working capital and general corporate purposes. If
the foregoing acquisitions do not close, McEwen will use the net
proceeds of this offering for working capital and general corporate
purposes.
The public offering is being made in the United
States through CFCC’s U.S. affiliate, Cantor Fitzgerald & Co.,
pursuant to the shelf registration statement on Form S-3 that was
filed by McEwen with the Securities and Exchange Commission (“SEC”)
on June 3, 2015 and declared effective by the SEC on July 10, 2015,
and in Canada pursuant to the final northbound MJDS base shelf
prospectus dated July 27, 2015 that was filed with the securities
regulators in each of the Provinces of Canada other than Quebec
(collectively, the “Canadian Regulators”). The offering is being
made only by means of a U.S. and Canadian prospectus. Prospective
investors should carefully read the prospectus and related
registration statement. The underwriting agreement, as well as a
prospectus supplement and accompanying prospectus relating to and
describing the terms of the offering will be filed with the SEC and
the Canadian Regulators, and will be available on the SEC’s website
at www.sec.gov and at www.sedar.com under McEwen’s profile. Copies
of the underwriting agreement, the U.S. or Canadian prospectus
supplement and the accompanying U.S. or Canadian prospectus
relating to the offering may also be obtained, when available, by
contacting Cantor Fitzgerald Canada Corporation, Attention: Equity
Capital Markets, 181 University Avenue, Suite 1500, Toronto, ON,
M5H 3M7, email: ecmcanada@cantor.com or Cantor Fitzgerald &
Co., Attention: Capital Markets, 499 Park Ave., 6th Floor, New
York, NY, 10022, or by email at prospectus@cantor.com.
This news release shall not constitute an offer
to sell or a solicitation of an offer to buy these or any other
securities. There shall not be any sale of these securities
in any jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
McEwen is relying on the exemption set forth in
Section 602.1 of the TSX Company Manual, which provides that the
TSX will not apply certain of its requirements to issuers whose
shares are listed on another recognized stock exchange such as the
NYSE.
About McEwen Mining
McEwen has the goal to qualify for inclusion in
the S&P 500 Index by creating a high growth gold and silver
producer focused in the Americas. McEwen’s principal assets consist
of the San José mine in Santa Cruz, Argentina (49% interest), the
El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold
Bar project in Nevada, the Timmins projects in Canada and the Los
Azules copper project in Argentina.
McEwen has a total of 312 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 25%
of McEwen.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTS
This news release contains certain
forward-looking statements and information, including
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and “forward-looking
information” under applicable Canadian securities laws, such as
statements regarding the anticipated closing date of the offering
and the anticipated use of proceeds of the offering. The
forward-looking statements and information expressed, as at the
date of this news release, McEwen’s estimates, forecasts,
projections, expectations or beliefs as to future events and
results. Forward-looking statements and information are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties, risks
and contingencies, and there can be no assurance that such
statements and information will prove to be accurate. Therefore,
actual results and future events could differ materially from those
anticipated in such statements and information. Readers should not
place undue reliance on forward-looking statements or information
included herein, which speak only as of the date hereof. McEwen
undertakes no obligation to reissue or update forward-looking
statements or information as a result of new information or events
after the date hereof except as may be required by law. See
McEwen’s annual and periodic reports filed with the SEC,
under the caption “Risk Factors,” for additional information on
risks, uncertainties and other factors relating to the
forward-looking statements and information regarding McEwen. All
forward-looking statements and information made in this news
release are qualified by this cautionary statement.
The NYSE and TSX have not reviewed and do not accept
responsibility for the adequacy or accuracy of the contents of this
news release, which has been prepared by management of McEwen
Mining Inc.
CONTACT
INFORMATION: |
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Mihaela IancuInvestor Relations(647) 258-0395 ext
320info@mcewenmining.com
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Websitewww.mcewenmining.com
Facebookfacebook.com/mcewenrob
Twittertwitter.com/mcewenmining |
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