McEwen Mining closes $50m public offering

The Gold Bar project in Nevada. (Image courtesy of McEwen Mining)

Toronto-based gold producer McEwen Mining (NYSE, TSX: MUX) on Friday announced the closing of its previously announced public offering of 37.75 million units at a price of $1.325 per unit for aggregate gross proceeds of $50 million.

Each unit consists of one common share and one half of a common share purchase warrant, with each full warrant exercisable for one share at $1.7225 per share for five years following issuance.

The company granted the underwriters a 30-day option to purchase up to an additional 5.66 million shares and/or additional warrants to purchase up to 2.83 million shares at the public offering price, less the underwriting discounts and commissions. On Thursday, the underwriters exercised their option to purchase the additional warrants in full, which were issued at the closing.

Net proceeds of the offering will be used to advance McEwen’s current mining projects, which include the San José mine in Argentina, the Black Fox Complex in Ontario and the Gold Bar mine in Nevada, as well as for operating and general working capital.

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