McEwen Mining (TSX: MUX) is looking to raise funds to bolster its exploration efforts in Canada. The firm late on Friday evening announced that they would be conducting a flow through financing of common shares.
Under the terms of the financing, the company will look to raise gross proceeds of US$15.1 million, or roughly CAD$19.2 million through the sale of flow through common shares. Each share is to be priced at US$1.04, the equivalent of CAD$1.325. No warrants are being offered under the terms of the financing.
Proceeds from the financing are to be used exclusively at the firms Timmins properties, with all funds to be used for qualified exploration expenses. More specifically, McEwen Mining indicated that the funds “will be employed to build on the business case outlined in [their] recently announced preliminary economic assessment.”
That economic assessment, or PEA, was for the Fox Complex. The report outlined a mine life of twelve years for the property, with an average annual production of 71,980 ounces of gold. Cash costs are currently estimated to be under $800 per ounce, while all-in sustaining costs are said to be under $1,225 per ounce. Peak production is expected in the latter years, topping 100,000 ounces. The net present value of the property, with a 5% discount, at $1,650 per ounce gold is said to be US$175.0 million.
Despite the release announcing the details of the financing in US dollars, the offering is only open to those outside of the US. The financing is slated to close March 1, 2022.
McEwen Mining last traded at $1.12 on the TSX.
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