McEwen Mining Inc. (NYSE and TSX: MUX) announced financing through private placement without intermediaries for a total of US$70 million for its subsidiary McEwen Copper Inc. This transaction involves the issuance of up to 2,333,333 common shares of McEwen Copper at a subscription price of US$30.00 per share.
Main orders have already been agreed by McEwen Mining and Rob McEwen, who will buy 27% of the total offer. Specifically, McEwen Mining will acquire up to 466,667 common shares for US$14 million and Rob McEwen will purchase up to 166,666 common shares for US$5 million. The final investment amounts are subject to adjustments in accordance with the anti-dilution and preemptive rights of other existing shareholders.
The purpose of this offer is finance the advancement of the feasibility study definitive for the copper project The Blues, with release scheduled for the first quarter of 2025. Additionally, the remaining 1,700,000 common shares will be available to qualified accredited investors, with a minimum investment of US$2 million and other specific conditions. The securities sold in the offering will be subject to transfer restrictions until they are publicly traded.
Before this offer, McEwen Mining owned 14,768,000 common shares (47.7%) and Rob McEwen 4,000,000 common shares (12.9%) of McEwen Copper. Assuming completion of the full offering amount and indicated investment amounts, McEwen Mining will own 45.8% of McEwen Copper and Rob McEwen will own 12.5%.
This financing represents a significant step for the development of the Los Azules copper project, underlining the continued commitment of McEwen Mining and its partners to advance one of the most promising copper projects in South America.
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