- Canadian Gold (TSXV:CGC) will sell approximately $3 million in shares to McEwen Mining (TSX:MUX), a global gold and silver producer led by renowned mining investor, Rob McEwen
- Proceeds will fund advancements at Canadian Gold’s Tartan mine in Manitoba, which houses a mineral resource estimated at 240,000 ounces of gold indicated and 37,000 ounces inferred
- Canadian Gold stock has added 28.57 per cent year-over-year and 500 per cent since 2020
Canadian Gold (TSXV:CGC) will sell approximately $3 million in shares to McEwen Mining (TSX:MUX), a global gold and silver producer led by renowned mining investor, Rob McEwen.
Upon closing, McEwen Mining will own 5.9 per cent of Canadian Gold’s outstanding shares and 7.1 per cent on a partially diluted basis, while Rob McEwen will own 32 per cent of Canadian Gold’s outstanding shares.
According to Monday’s news release, proceeds will go towards exploration and development on Canadian Gold’s flagship past-producing Tartan mine in Manitoba, which houses a mineral resource estimated at 240,000 ounces of gold indicated and 37,000 ounces inferred. Highlight intercepts from zones prospective for expansion include 12 g/t gold over 8 metres (Main zone) and 29.1 g/t gold over 5.9 metres (South Zone).
The offering is expected to close by March 31, 2025.
Financing details
The transaction, structured as a non-brokered private placement, consists of 8,823,529 charity flow-through shares priced at $0.28 and 2,941,176 common share units priced at $0.17.
Each share unit consists of one non-flow-through Canadian Gold share and one common share purchase warrant, with each warrant entitling McEwen Mining to acquire one additional common share for $0.22 for 12 months from the closing of the offering.
The charity flow-through shares will go towards eligible Canadian exploration expenses at Tartan on or before December 31, 2026, and will be renounced in favour of the subscribers effective December 31, 2025.
Leadership insights
“We are honored to welcome McEwen Mining as a strategic shareholder,” Michael Swistun, president and chief executive officer of Canadian Gold, said in a statement. “Their investment represents a significant validation and endorsement of the results of our ongoing exploration efforts at Tartan. We have a shared vision to aggressively advance toward the goal of restarting the Tartan mine. We look forward to putting this investment to work immediately to expand and quantify the resource on the Main zone and South zone, plus do follow-up drilling at our recently discovered third parallel zone to the south of the South zone.”
About Canadian Gold
Canadian Gold is a mineral exploration and development company expanding the high-grade gold resource at the past-producing Tartan mine in Flin Flon, Manitoba. The company also owns greenfield exploration properties in Ontario and Quebec adjacent to some of Canada’s largest gold mines and development projects, including the Canadian Malartic mine (QC), the Hemlo mine (ON) and the Hammond Reef project (ON).
Canadian Gold stock (TSXV:CGC) last traded at C$0.18 per share. The stock has added 28.57 per cent year-over-year and 500 per cent since 2020.
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