McEwen Inc. (NYSE: MUX) (TSX: MUX) has agreed to acquire Canadian Gold Corp. (TSX-V: CGC) through an all-stock transaction, presenting Canadian Gold shareholders with a 26% premium based on the 30-day VWAP. This acquisition is set to enrich McEwen's asset portfolio with the high-grade Tartan Mine in Manitoba, in addition to properties in Ontario and Quebec, aiming to recommence production within 24 to 36 months.
The deal, pegged at an implied price of C$0.35 per share, will see Canadian Gold shareholders holding about 8.2% of the merged entity. Rob McEwen, Chairman of McEwen Inc., pointed to the Tartan Mine's resemblance to the Fox Complex and Manitoba's mining-friendly environment as pivotal to the agreement. Peter Shippen, Chairman of Canadian Gold, underscored the transaction's advantages, such as improved liquidity and the utilization of McEwen's financial and technical expertise.
For more information on the acquisition, visit https://ibn.fm/xw04x.
