McEwen Inc. Acquires 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, offering 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 existing properties in Ontario and Quebec, with the potential to restart production within 24 to 36 months. The transaction represents a significant consolidation in the Canadian mining sector, combining McEwen's established operations with Canadian Gold's promising development assets.

The acquisition, valued at an implied price of C$0.35 per share, will result in Canadian Gold shareholders owning approximately 8.2% of the combined company. This structure provides Canadian Gold investors with continued exposure to the Tartan Mine's development while benefiting from McEwen's larger operational scale and financial stability. The premium offered reflects the strategic value McEwen places on Canadian Gold's assets and the potential synergies between the two companies' operations across multiple Canadian jurisdictions.

McEwen Chairman Rob McEwen highlighted the Tartan Mine's geological similarities to the company's Fox Complex as a key factor driving the acquisition decision. He also emphasized Manitoba's reputation as a favorable mining jurisdiction with established infrastructure and supportive regulatory frameworks. These factors position the combined entity to accelerate development timelines and optimize operational efficiencies across their expanded portfolio of Canadian gold assets. The transaction aligns with McEwen's strategy of building a diversified portfolio of high-quality gold assets in mining-friendly jurisdictions.

Canadian Gold Chairman Peter Shippen emphasized the transaction's benefits for shareholders, including enhanced liquidity and access to McEwen's substantial financial and technical resources. The combination provides Canadian Gold with the capital and expertise needed to advance the Tartan Mine toward production more efficiently than would have been possible as a standalone company. For additional details about the acquisition structure and terms, readers can visit https://ibn.fm/xw04x for comprehensive information about the transaction's implications for both companies' stakeholders.

The acquisition comes at a time when gold mining companies are seeking to consolidate assets to achieve operational scale and cost efficiencies. By combining forces, McEwen and Canadian Gold create a stronger entity better positioned to navigate market volatility and capitalize on favorable gold price trends. The transaction's timing reflects strategic positioning to maximize value from the Tartan Mine's development potential while leveraging McEwen's existing infrastructure and operational expertise in similar geological settings across Canada's mining regions.