McEwen to Acquire Canadian Gold in All-Stock Deal Valuing Shares at C$0.60

McEwen Mining has agreed to acquire Canadian Gold in an all-stock transaction, valuing each Canadian Gold share at C$0.60. Canadian Gold owns the past-producing Tartan Lake gold mine in Manitoba. The deal marks McEwen's entry into the Canadian market, with plans to explore and develop Canadian Gold's assets.

McEwen Mining Inc. (NYSE: MUX) has agreed to acquire Canadian Gold (OTCQB: STRRF) in an all-stock transaction, valuing each Canadian Gold share at C$0.60. The deal, announced on Tuesday, marks McEwen's entry into the Canadian market and includes plans to explore and develop Canadian Gold's assets, according to a Seeking Alpha article.

Canadian Gold, owner of the past-producing Tartan Lake gold mine in Manitoba, will be acquired through a transaction where each Canadian Gold shareholder will receive 0.0225 McEwen common shares for each Canadian Gold share held. Upon completion, existing McEwen and Canadian Gold shareholders will own approximately 92% and 8% of the combined company, respectively, the Seeking Alpha article said.

The primary asset of Canadian Gold is its 100% interest in the Tartan Lake gold mine project, a high-grade gold project with existing infrastructure and significant exploration potential. McEwen believes the development of the Tartan Lake mine has similarities to its Fox Complex, including ramp access, mining method, and proposed process plant design, which could leverage the company's internal skills, the Seeking Alpha article added.

McEwen Mining is a gold and silver producer with operations in Canada, the United States, Mexico, and Argentina. It owns over 48% of McEwen Copper Inc., which owns the Los Azules copper project in Argentina. McEwen's segments include the Gold Bar mine in Nevada, the Fox Complex gold properties in Canada, the El Gallo mine and Fenix Project in Mexico, and a 49% interest in the San Jose mine in Argentina, according to a MarketScreener article.

The acquisition of Canadian Gold aligns with McEwen's strategy to expand its portfolio and explore new opportunities in the Canadian market. The deal is expected to provide McEwen with access to high-grade gold assets and further strengthen its position in the mining sector.