Loading ...“Monday February 13, 2017 08:03
McEwen Mining Inc. (TSX, NYSE: MUX) says the company has agreed to acquire all outstanding securities of Lexam VG Gold Inc. (TSX: LEX), with Lexam becoming a subsidiary of McEwen Mining. The arrangement is subject to approval by shareholders of Lexam. Under the deal, each Lexam common share would entitle the holder to receive 0.056 of a McEwen share. Lexam shareholders would receive a premium of 30% to the 30-day volume weighted average price of the Lexam Shares, McEwen Mining reports. Based on current outstanding Lexam shares, McEwen Mining would issue 12,689,709 shares of McEwen Mining stock to shareholders of Lexam. “Lexam’s assets include multiple advanced exploration projects located in the prolific gold camp of Timmins, Ontario. Lexam’s primary projects are past producers with defined resources and excellent infrastructure,” says Rob McEwen, chief owner of both McEwen Mining and Lexam. “The proposed transaction would give the Lexam shareholders access to McEwen Mining’s technical and financial resources, enabling the projects to be advanced towards production. Lexam shareholders will also gain exposure to a growing gold and silver producer, with a diversified portfolio of projects throughout the Americas.” If approved, the acquisition means McEwen Mining will add measured and indicated gold resources of 1,468,500 ounces and inferred gold resources of 954,000 ounces.”