McEwen Mining Announces Timmins Exploration Program and Funding
December 01 2017 - 9:26AM
McEwen Mining Inc. (NYSE:MUX) (TSX:MUX)
(“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
McEwen 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 José 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 future mine 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.
QUALIFIED PERSONTechnical
information pertaining to geology and exploration contained in this
news release has been prepared under the supervision of Dean Crick
and Sylvain Guerard. Mr. Crick and Mr. Guerard are a
"qualified person" within the meaning of NI 43-101.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis 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. The forward-looking
statements and information expressed, as at the date of this news
release, McEwen Mining Inc.'s (the "Company") estimates,
forecasts, projections, expectations or beliefs as to future events
and results including, but not limited to, the closing of the
Offering and the use of proceeds thereof. 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. Risks and uncertainties that could
cause results or future events to differ materially from current
expectations expressed or implied by the forward-looking statements
and information include, but are not limited to, factors associated
with fluctuations in the market price of precious metals, mining
industry risks, political, economic, social and security risks
associated with foreign operations, the ability of the corporation
to receive or receive in a timely manner permits or other approvals
required in connection with operations, risks related to
fluctuations in mine production rates, risks associated with the
construction of mining operations and commencement of production
and the projected costs thereof, risks related to litigation, the
state of the capital markets, environmental risks and hazards,
uncertainty as to calculation of mineral resources and reserves,
and other risks. The Company’s dividend policy will be reviewed
periodically by the Board of Directors and is subject to change
based on certain factors such as the capital needs of the Company
and its future operating results. Readers should not place undue
reliance on forward-looking statements or information included
herein, which speak only as of the date hereof. The Company
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 Mining's Annual Report on Form 10-K for the fiscal
year ended December 31, 2016 and other filings with
the Securities and Exchange Commission, under the caption
"Risk Factors", for additional information on risks, uncertainties
and other factors relating to the forward-looking statements and
information regarding the Company. 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: |
|
Mihaela IancuInvestor Relations(647)-258-0395 ext
320info@mcewenmining.com |
Website: www.mcewenmining.com
Facebook: facebook.com/mcewenrob
Twitter: twitter.com/mcewenmining |
150 King
Street WestSuite 2800, P.O. Box 24Toronto, Ontario, CanadaM5H
1J9(866)-441-0690 |
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