McEwen Mining (NYSE: MUX) (TSX: MUX) announced on Wednesday that it launching a new round of financing to fund the continued exploration and development at its Fox Complex, located in the Timmins region of Ontario.
The financing consists of two parts: a $7.3 million private placement of 788,000 flow-through common shares priced at $9.27 each; and a $8.8 million private placement of 1.11 million flow-through common shares priced at $7.86 each.
Together, approximately 1.9 million shares will be offered through the two private placements, for gross proceeds of $16.1 million. The financing is expected to close on Dec. 14, 2023, the precious metals miner noted.
The Fox Complex comprises several mine properties covering 70 sq.km. along the Destor-Porcupine fault, also known as the ‘Golden Highway’, home to many of the richest gold mines in both Ontario and Quebec.
Its main properties include Black Fox, Stock and Lexam. Together, the Fox Complex properties, led by the new Froome mine that entered production in 2021, had 36,650 gold-equivalent ounces of production in 2022, representing a third of the company’s annual output.
McEwen is currently contemplating an expansion to the Fox Complex. A preliminary economic assessment for the expansion, to occur after mining is completed at Froome, outlined a mine life of over 9 years with average annual gold production of 80,800 oz.
