McEwen Inc. Acquires Canadian Gold Corp. in All-Stock Transaction with 26% Premium

McEwen Inc. has entered into a binding letter of intent to acquire Canadian Gold Corp. in an all-stock transaction, offering Canadian Gold shareholders a 26% premium based on the 30-day volume-weighted average price. This strategic acquisition adds the high-grade Tartan Mine in Manitoba to McEwen's growing portfolio of mining assets, alongside additional properties located in Ontario and Quebec. The transaction positions the combined entity for potential production restart at the Tartan Mine within 24 to 36 months, representing a significant near-term production opportunity in the Canadian mining sector.

The acquisition carries an implied valuation of C$0.35 per share for Canadian Gold shareholders, who will collectively own approximately 8.2% of the combined company following the transaction's completion. This ownership structure provides Canadian Gold investors with continued exposure to the assets while benefiting from McEwen's larger market capitalization and enhanced trading liquidity. The premium offered reflects the strategic value McEwen places on Canadian Gold's assets and the potential synergies between the two companies' operations and development plans.

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. The combination of these factors made the acquisition particularly attractive from both operational and strategic perspectives, positioning McEwen to leverage its existing expertise and resources in the region.

Peter Shippen, Chairman of Canadian Gold Corp., underscored the transaction's benefits for his company's shareholders, pointing to enhanced market liquidity and improved access to McEwen's substantial financial and technical resources. The acquisition provides Canadian Gold shareholders with exposure to a larger, more diversified mining company while maintaining interest in the development potential of the Tartan Mine and other Canadian Gold properties. Additional details about the acquisition structure and timing are available at https://ibn.fm/xw04x.

The transaction represents a significant consolidation in the Canadian gold mining sector, bringing together complementary assets and technical expertise. The Tartan Mine's high-grade characteristics and development-ready status align with McEwen's strategy of building a diversified portfolio of mining assets across multiple jurisdictions. The 24 to 36 month timeline for potential production restart demonstrates the advanced stage of development at the Tartan property and the company's confidence in moving quickly toward commercial operations once the acquisition is finalized.