McEwen Mining Announces 2019 Timmins Exploration Strategy and Funding
December 05 2018 - 7:36PM
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)
(“McEwen”) is pleased to announce a strategic financing to
continue our successful ongoing exploration program at our
properties in the Timmins region of Ontario.
“We are issuing 2% of our currently
outstanding shares to raise $15,000,000 at $2.26 per share
(Cdn$3.02) to fund our 2019 exploration program on our Timmins
properties. We want to build on the exploration success of this
year’s effort, where we increased our resources and generated a
number of exciting exploration targets. These properties are
located along a prolific geological trend in one of the world’s
great gold districts,” said Rob McEwen, Chairman and Chief
Owner.
The financing consists of a US$15,000,000
(Cdn$20,034,680) bought deal private placement offering (the
“Offering”) of 6,634,000 flow-through common shares (within the
meaning of subsection 66(15) of the Income Tax
Act (Canada)) priced at US$2.26 (Cdn$3.02) per flow-through
common share (the “Offering Price”) led by Cantor Fitzgerald Canada
Corporation as sole bookrunner. The Offering Price represents a
premium of 26% over the closing price of McEwen common shares on
the TSX as of December 5, 2018. The Offering is expected to close
on or before December 21, 2018 (the “Closing”) and is subject to
customary closing conditions, including approval from the TSX and
NYSE.
The proceeds of this Offering will be used
exclusively for generative exploration activities on McEwen’s
properties in the Timmins region.
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
Black Fox mine in Timmins, Canada; the Fenix Project in Mexico; the
Gold Bar mine in Nevada, currently under construction; and the
large Los Azules copper project in Argentina, advancing towards
development.
McEwen has a total of 337 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 24% of the
shares. Subsequent to the closing of the Offering the shares
outstanding will increase to 344 million.
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. 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 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, 2017 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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