McEwen Mining keeps growing, buys exploration junior Lexam VG
Canadian precious metals producer McEwen Mining (TSX, NYSE:MUX) said Monday it has entered into an agreement to acquire junior Lexam VG, which has mineral properties in advanced exploration stage in the heart of Timmins Gold Camp, northern Ontario.
The proposed friendly acquisition will see Lexam’s shareholders receiving 0.056 of a McEwen Mining share valued at US $4.23 its Friday’s closing price in New York.
The exchange ratio, McEwen said, represents an offer price of Cdn$0.31 per Lexam share, being a premium of 30% over the volume weighted average price of the gold explorer’s stock for the 30 trading days prior to February 10.
The deal, subject to approval by Lexam’s shareholders would give the gold explorer access to McEwen Mining’s technical and financial resources, enabling it to move forward its current projects towards production, said Rob McEwen, Chairman and Chief Owner of McEwen Mining.
“Lexam shareholders will also gain exposure to a growing gold and silver producer, with a diversified portfolio of projects throughout the Americas,” he noted in the statement.
The legendary mining executive knows how to take gold mining companies to the next level, having built Goldcorp (TSX:G) (NYSE:GG) into a major producer before stepping down as chairman and CEO in 2005.
Now, he’s working on expanding McEwen Mining Inc., with has producing mines in Mexico and Argentina.
As told to MINING.com, the challenge McEwen sees for his company is to secure support from the big brokerage companies by getting into the S&P 500. He plans to do that over the next three years with a combination of organic growth in production as well as mergers and acquisitions.