McEwen Inc. (MUX) Sells Two Timmins Gold Properties for $55 Million, but Only $5 Million Arrives as Cash
The rest of the price comes as Discovery Mining shares under a four-month hold, as McEwen funds its push toward as much as 300,000 gold equivalent ounces a year by 2030.
"With minimal to no share dilution" is how McEwen Inc. (MUX) says it will reach 250,000 to 300,000 gold equivalent ounces a year by 2030. On Friday it agreed to sell two Ontario properties to help pay for that plan.
The deal hands its Fuller property and its 60% interest in the Paymaster joint venture, both near Timmins, to a subsidiary of Discovery Mining Ltd. for $55 million, according to its release.
Just $5 million of that is cash. The other $50 million comes as Discovery common shares, priced on a five-day average before closing and locked under a hold period of four months and one day.
McEwen also collected $13.5 million by assigning a loan receivable from McEwen Copper to new lenders. It counts the two deals as about $68.5 million of additional capital, of which $18.5 million is cash, as calculated by Trend & Ticker.
That cash equals about 20% of the $91.7 million McEwen held at the end of June, as calculated by Trend & Ticker. The company carried $126.6 million of debt at the same date, according to Trend & Ticker company data from SEC filings.
McEwen said the money will go to its operations and development projects. They include the Stock mine in its Fox Complex, which it expects to enter production this quarter.
The sale still needs Toronto Stock Exchange approval for the Discovery shares, and the release gives no closing date.
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