McEwen Mining to Acquire 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 that offers Canadian Gold shareholders a 26% premium based on the 30-day volume-weighted average price. This strategic acquisition significantly enhances McEwen's asset portfolio by adding the high-grade Tartan Mine in Manitoba alongside existing properties in Ontario and Quebec. The transaction carries substantial production potential, with estimates indicating the Tartan Mine could restart operations within 24 to 36 months following completion of the deal.

The acquisition values Canadian Gold at an implied price of C$0.35 per share, resulting in Canadian Gold shareholders owning approximately 8.2% of the combined company post-transaction. This structure provides immediate value to Canadian Gold investors through the premium offer while maintaining their participation in the future growth potential of the enlarged entity. The all-stock nature of the deal also facilitates smoother integration and alignment of shareholder interests across both companies.

Rob McEwen, Chairman of McEwen Inc., emphasized the strategic rationale behind the acquisition, noting the Tartan Mine's geological similarities to the company's existing Fox Complex operations. He also highlighted Manitoba's reputation as a favorable mining jurisdiction with established infrastructure and supportive regulatory frameworks. These factors combine to create significant operational synergies and reduce development risks for the combined company. Additional information about the transaction details can be found at https://ibn.fm/xw04x.

Peter Shippen, Chairman of Canadian Gold Corp, underscored the transaction benefits for his company's shareholders, pointing to enhanced market liquidity and improved access to McEwen's substantial financial and technical resources. The combination addresses Canadian Gold's need for development capital and operational expertise to advance the Tartan Mine toward production. The merger creates a stronger, more diversified mining company with multiple development assets across established Canadian mining jurisdictions, positioning it for accelerated growth in the North American gold sector.