McEwen Mining raises $22 million to fund Fox Complex exploration in Ontario

McEwen Mining (NYSE: MUX) (TSX: MUX) has raised C$30 million ($22m) to fund ongoing exploration and development at the Fox Complex in the Timmins region of Ontario.

The company announced on June 14 it had closed the flow-through financing, consisting of 1,533,000 flow-through common shares at a blended average price of C$19.59 ($14.36), a 19% premium to the closing price on May 27.

Cantor Fitzgerald Canada Corporation and Cantor Fitzgerald & Co. led a syndicate of placement agents for the Offering, which included Roth Capital Partners, LLC, A.G.P./Alliance Global Partners, and H.C. Wainwright & Co., LLC. PearTree Securities Inc. structured the flow-through donation placement.

McEwen said the funds will be primarily focused on exploration drilling and the development of an underground access ramp from surface to mine the gold resources of Stock East and West, representing the next area of production growth at the Fox Complex.

The Fox Complex comprises several mine properties covering 70 sq.km. along the Destor-Porcupine fault, also known as the ‘Golden Highway’, home to many of the richest gold mines in both Ontario and Quebec.

Its main properties include Black Fox, Stock and Lexam. Together, the Fox Complex properties, led by the new Froome mine that entered production in 2021, had 36,650 gold-equivalent ounces of production in 2022, representing a third of the company’s annual output.

 A preliminary economic assessment for the Fox Complex expansion, to occur after mining is completed at Froome, outlined a mine life of over 9 years with average annual gold production of 80,800 oz.