McEwen Mining to Acquire Canadian Gold Corp in Strategic All-Stock Transaction

McEwen Inc. has entered into a binding letter of intent to acquire Canadian Gold Corp in an all-stock transaction that offers Canadian Gold shareholders a 26% premium based on the 30-day volume-weighted average price. This strategic acquisition brings the high-grade Tartan Mine in Manitoba into McEwen's asset portfolio, alongside additional properties in Ontario and Quebec. The transaction carries significant potential for restarting production at the Tartan Mine within 24 to 36 months, representing a substantial expansion of McEwen's mining operations in Canada.

The acquisition values Canadian Gold at an implied price of C$0.35 per share, with Canadian Gold shareholders expected to own approximately 8.2% of the combined company following the transaction's completion. This ownership structure provides Canadian Gold investors with continued exposure to the assets while benefiting from McEwen's larger operational scale and market presence. The deal represents a strategic consolidation in the Canadian mining sector, combining complementary assets and technical expertise.

Rob McEwen, Chairman of McEwen Inc., emphasized the strategic rationale behind the acquisition, noting the Tartan Mine's geological similarities to the company's existing Fox Complex operations. He also highlighted Manitoba's reputation as a favorable mining jurisdiction with established infrastructure and supportive regulatory frameworks. These factors were cited as key considerations in pursuing the transaction, which aligns with McEwen's growth strategy in established mining regions.

Peter Shippen, Chairman of Canadian Gold Corp, underscored the transaction's benefits for Canadian Gold shareholders, including enhanced liquidity through McEwen's listing on both the NYSE and TSX exchanges. Shareholders will gain access to McEwen's financial resources and technical expertise, which could accelerate development of the Tartan Mine and other properties. The combined company expects to leverage operational synergies and shared technical knowledge to optimize development timelines and resource utilization.

The acquisition's timing coincides with renewed interest in Canadian gold assets amid favorable market conditions for precious metals. The Tartan Mine's high-grade characteristics and proximity to existing infrastructure position it as a potentially significant contributor to McEwen's production profile. Additional information about the transaction details and strategic implications is available at https://ibn.fm/xw04x. The transaction remains subject to standard regulatory approvals and shareholder consent, with completion expected to follow customary closing conditions for similar mining sector acquisitions.