McEwen Mining Inc. (NYSE:MUX) (TSX: MUX) announces that its subsidiary, McEwen Copper Inc., has closed the first tranche of the Series B private placement offering announced on July 6th, 2021, issuing 4,000,000 common shares at a price of $10.00 per share for gross proceeds of $40,000,000.
Subscription for the remaining 4,000,000 common shares is available to qualified accredited investors, subject to a $1 million minimum investment and certain other conditions. The securities sold in the Offering are private and subject to transfer restrictions until after such time as shares of McEwen Copper become listed on a public exchange. The second tranche of the Offering is expected to close on or before September 30th, 2021.
Rob McEwen’s investment corporation, Evanachan Limited, purchased all the shares issued pursuant to the first tranche of the Offering. Following completion of the Offering, Rob McEwen beneficially owns 18.6% of McEwen Copper, which holds a 100% interest in the Los Azules copper project in San Juan, Argentina, and a 100% interest in the Elder Creek exploration property in Nevada, subject to a 1.25% net smelter return royalty on both assets payable to McEwen Mining.
McEwen Copper intends to pursue an initial public listing within 12 months from the final closing of the Offering. Proceeds from the Offering will be used exclusively by McEwen Copper to advance the Los Azules project to a pre-feasibility study, construction of a new year-round access road to the project, infill and exploration drilling at Los Azules and Elder Creek, environmental permitting and community relations, and general corporate purposes. Construction of the new access road is currently underway and has advanced 10 miles (16 km) of the approximate 72 mile (115 km) planned length.
McEwen Mining is relying on the exemption set forth in Section 602.1 of the TSX Company Manual, which provides that the TSX will not apply certain of its requirements to issuers whose shares are listed on another recognized stock exchange such as the NYSE.
This news release and the information included herein do not constitute an offer to buy or the solicitation of an offer to subscribe for or to buy any of the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina.
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We acknowledge the [financial] support of the Government of Canada.