TORONTO, Sept. 18, 2017 (GLOBE NEWSWIRE) — McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) (“McEwen”) is pleased to announce that it has entered into an underwriting agreement with a syndicate of underwriters (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal underwritten basis, 18,000,000 shares of its common stock and warrants to purchase up to 9,000,000 shares of its common stock, at a price of $2.25 per share and associated one-half common stock warrant, for gross proceeds, before deducting underwriting commissions and estimated offering expenses, of $40.5 million. The warrants will have a term of 53 weeks from issue date and an exercise price of $2.70 per whole share. In addition, McEwen has granted the Underwriters a 30-day option to purchase up to an additional 2,700,000 shares of common stock and/or warrants to purchase up to 1,350,000 shares of common stock. The offering is expected to close on or about September 22, 2017, subject to customary closing conditions.
Cantor Fitzgerald Canada Corporation (“CFCC”) is acting as the sole book-running manager for the offering. H.C. Wainwright & Co., LLC is acting as the lead manager for the offering.
McEwen intends to use the net proceeds of the offering to fund the previously announced acquisition of the Black Fox Complex and associated assets and liabilities, an operating precious metal mine, associated claims and equipment located in the Township of Black River-Matheson, Ontario, Canada, and the Grey Fox Property, an exploration property located near the Black Fox Complex, and for working capital and general corporate purposes. If the foregoing acquisitions do not close, McEwen will use the net proceeds of this offering for working capital and general corporate purposes.