McEwen to acquire Canadian Gold in $0.60 per share deal

TORONTO/FLIN FLON - McEwen Inc. (NYSE:MUX) (TSX:MUX), currently trading near its 52-week high of $20.57 and showing remarkable momentum with a 149% return over the past six months according to InvestingPro, announced today it has entered into a definitive agreement to acquire all outstanding shares of Canadian Gold Corp. (TSX-V:CGC) in an all-stock transaction valuing Canadian Gold at CDN $0.60 per share.

Under the agreement signed October 10, Canadian Gold shareholders will receive 0.0225 McEwen shares for each Canadian Gold share held, representing a 96.7% premium over Canadian Gold’s closing price prior to the announcement of the initial letter of intent. McEwen, with a market capitalization of $1.1 billion and a current ratio of 2.35, demonstrates strong liquidity to support this strategic acquisition.

Upon completion, expected in early January 2026, existing McEwen and Canadian Gold shareholders will own approximately 92% and 8% of the combined company, respectively. McEwen will continue trading under its current name and ticker symbols on both the NYSE and TSX.

The transaction will add Canadian Gold’s primary asset, the Tartan Lake Gold Mine Project in Manitoba, to McEwen’s portfolio. The Tartan Mine is a high-grade former producing gold mine with existing infrastructure.

"The Tartan Mine benefits from access to a skilled mining workforce and does not require the construction of a mining camp," according to the statement released by both companies.

The deal requires approval from 66⅔% of Canadian Gold shareholders and a simple majority of minority shareholders at a special meeting scheduled for December 5, 2025. Court and regulatory approvals are also needed, including from the TSX Venture Exchange, TSX, and NYSE.

The arrangement includes customary deal protection provisions, including a $2.195 million break fee payable to McEwen under certain circumstances.

The boards of both companies have approved the transaction based on recommendations from their respective special committees of independent directors. Due to conflicts of interest, Robert McEwen and Ian Ball abstained from voting on McEwen’s board, while Alexander McEwen and Jim Downey acknowledged conflicts on Canadian Gold’s board.

This article is based on a press release statement from the companies.

In other recent news, McEwen Copper Inc.’s Los Azules copper project has received approval to participate in Argentina’s Large Investment Incentive Regime, marking a significant milestone for the company. This approval supports a $2.67 billion investment plan for exploration, construction, and operational phases in the San Juan Province. Additionally, McEwen Copper has signed a collaboration agreement with the International Finance Corporation to align the Los Azules project with IFC’s environmental, social, and governance standards. This partnership could pave the way for future debt and equity financing from the IFC, enhancing the project’s financial prospects.

In corporate developments, McEwen Inc. appointed Ian Ball as Vice-Chairman, a role aimed at supporting strategic growth initiatives, including plans to double production by 2030. Meanwhile, TEGNA Inc. reported a 5% year-over-year decline in revenue for Q2 2025, totaling $675 million, amid a challenging advertising market. The earnings call noted a decrease in Advertising and Marketing Services revenue and stable distribution revenue. These recent developments provide investors with insights into the strategic directions and financial challenges faced by these companies.

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