Core Viewpoint - McEwen Mining Inc. has successfully closed an offering of $110 million in 5.25% convertible senior notes due 2030, aimed at funding growth initiatives while minimizing dilution for existing shareholders [1][3]. Group 1: Offering Details - The offering includes an upsized amount of $95 million and a full exercise of a $15 million option for initial purchasers [1]. - The initial conversion rate for the notes is set at 88.9284 shares per $1,000 principal amount, translating to a conversion price of approximately $11.25 per share, which is a 30% premium over the stock price on February 6, 2025 [2][6]. - The capped call strategy could increase the effective conversion price at maturity to $17.30 per share, representing a 100% premium to the closing price on February 6, 2025 [2][3]. Group 2: Financial Implications - The notes carry a coupon rate of 5.25%, which is significantly lower than the 9.75% on the existing senior secured debt of $40 million, which will be reduced to $20 million through partial repayment from the offering proceeds [3][6]. - Approximately $90.8 million of net proceeds will be available after accounting for costs related to the capped call and underwriting expenses [6]. Group 3: Use of Proceeds - The net proceeds will be allocated as follows: $15.1 million for capped call costs, $20 million for partial repayment of senior secured debt, and the remainder for general corporate purposes [6]. - The company aims to increase gold production at the Fox Complex from 30,000 ounces in 2024 to 150,000 ounces by 2030, leveraging the proceeds from the offering [3].

Core Viewpoint - McEwen Mining Inc. has successfully closed an offering of $110 million in 5.25% convertible senior notes due 2030, aimed at funding growth initiatives while minimizing dilution for existing shareholders [1][3]. Group 1: Offering Details - The offering consists of $110 million in convertible senior notes, including an upsized offering of $95 million and a $15 million option exercised by initial purchasers [1]. - The initial conversion rate is set at 88.9284 shares per $1,000 principal amount, translating to a conversion price of approximately $11.25 per share, which is a 30% premium over the stock price on February 6, 2025 [2][7]. - The capped call could increase the effective conversion price at maturity to $17.30 per share, representing a 100% premium to the closing price on February 6, 2025 [2][3]. Group 2: Financial Implications - The interest rate on the notes is 5.25% per year, payable semi-annually, starting August 15, 2025 [7]. - The company plans to use approximately $20 million of the proceeds to reduce existing senior secured debt from $40 million to $20 million [3][7]. - The remaining net proceeds, estimated at $90.8 million after costs, will be allocated for general corporate purposes [7]. Group 3: Growth Strategy - The company aims to increase gold production at the Fox Complex from 30,000 ounces in 2024 to 150,000 ounces by 2030, supported by exploration success [3].

Core Viewpoint - McEwen Mining Inc. has announced a private placement of $95 million in convertible senior notes due 2030, with an option for an additional $15 million, aimed at qualified institutional buyers [1][12] Group 1: Transaction Details - The notes will be senior, unsecured obligations with a semi-annual interest rate of 5.25%, maturing on August 15, 2030 [3] - The initial conversion rate is set at 88.9284 shares per $1,000 principal amount, equating to an initial conversion price of approximately $11.25 per share, representing a 30% premium over the last reported sale price of $8.65 on February 6, 2025 [4][7] - The company estimates net proceeds from the offering to be approximately $91.3 million, or $105.9 million if the additional notes option is fully exercised [6] Group 2: Use of Proceeds - The proceeds will be used to pay for the capped call overlay cost of approximately $13.1 million, repay a portion of existing credit agreement borrowings, and for general corporate purposes [8] Group 3: Strategic Benefits - The offering allows the company to refinance $20 million of higher-interest debt and benefits from an attractive coupon rate of 5.25% [7] - Capped call transactions are expected to reduce potential dilution upon conversion of the notes and may offset cash payments required beyond the principal amount [9] Group 4: Market Impact - The company anticipates that the initial hedging activities related to the capped call transactions may influence the market price of its common stock and the notes [10][11]

TORONTO, Feb. 06, 2025 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) (the "Company") today announced its intention to offer, subject to market conditions and other factors, $85 million aggregate principal amount of convertible senior notes due 2030 (the "Notes") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In connection with the offering, the Company expects ...

32% Increase in the Indicated Resource to 1,538,000 Ounces of Gold 95% Increase in the Inferred Resource to 458,000 Ounces of Gold TORONTO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is providing minor corrections to yesterday's press release. Please note that the resource statements remain unchanged. The corrections are related to Table 2 numbers, specifically the percentage differences between 2021 and December 2024. In addition, the price of gold used in 2021 was $1,725, n ...

32% Increase in the Indicated Resource to 1,538,000 Ounces of Gold 95% Increase in the Inferred Resource to 458,000 Ounces of Gold TORONTO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is providing minor corrections to yesterday’s press release. Please note that the resource statements remain unchanged. The corrections are related to Table 2 numbers, specifically the percentage differences between 2021 and December 2024. In addition, the price of gold used in 2021 was $1,725, ...

32% Increase in the Indicated Resource to 1,538,000 Ounces of Gold 95% Increase in the Inferred Resource to 458,000 Ounces of Gold TORONTO, Feb. 03, 2025 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased to report a significant increase in the estimated gold (Au) resources at the Fox Complex's Grey Fox deposit to December 31st, 2024, compared to the last estimate in the 2021 Fox Complex PEA (refer to Table 1). The discovery cost of this increase was US $14.46 per ounce (oz). The deposit ...

32% Increase in the Indicated Resource to 1,538,000 Ounces of Gold 95% Increase in the Inferred Resource to 458,000 Ounces of Gold TORONTO, Feb. 03, 2025 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to report a significant increase in the estimated gold (Au) resources at the Fox Complex’s Grey Fox deposit to December 31st, 2024, compared to the last estimate in the 2021 Fox Complex PEA (refer to Table 1). The discovery cost of this increase was US $14.46 per ounce (oz). The depos ...

Core Viewpoint - McEwen Mining Inc. reported a consolidated production of 135,900 gold equivalent ounces (GEOs) for the full year 2024, which is within the guidance range provided earlier [1][2]. Production Summary - Gold Bar Mine produced 44,600 GEOs, exceeding the guidance range of 40,000 - 43,000 GEOs [2][3]. - San José Mine produced 60,100 GEOs, also slightly above the guidance range of 50,000 - 60,000 GEOs [2][3]. - Fox Complex produced 30,150 GEOs, which was below the annual guidance of 40,000 - 42,000 GEOs due to a stope failure [2][3]. 2025 Production and Cost Guidance - For 2025, consolidated production is expected to be between 120,000 and 140,000 GEOs, with the lower end influenced by the transition of production at the Fox Complex [4]. - Cash costs per GEO for 2025 are projected to be between $1,550 and $1,750, while all-in sustaining costs (AISC) are expected to range from $1,800 to $2,000 [3][4]. Operational Insights - At Fox Complex, development delays are anticipated to affect production, with commercial production from the Stock project now expected in early 2026 [5]. - Gold Bar Mine is expected to have lower production in the first half of 2025 due to ongoing waste stripping, which is projected to improve ore availability in the latter half of the year [6]. Company Overview - McEwen Mining operates in Nevada, Canada, Mexico, and Argentina, and also holds a 46.4% stake in McEwen Copper, which owns the Los Azules copper project in Argentina [10]. - The company aims to enhance productivity and asset life to increase share price and provide investor yield [10].

Company Performance - McEwen (MUX) has shown a year-to-date performance increase of approximately 5.1%, outperforming the average loss of 12.4% in the Basic Materials sector [4] - The Zacks Consensus Estimate for McEwen's full-year earnings has increased by 72.7% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Sector and Industry Context - McEwen is part of the Basic Materials sector, which consists of 235 individual stocks and ranks 9 in the Zacks Sector Rank [2] - Within the Mining - Miscellaneous industry, McEwen is one of 60 companies and currently holds a position at 91 in the Zacks Industry Rank [5] Comparative Analysis - Another stock in the Basic Materials sector, Equinox Gold (EQX), has a year-to-date return of 3.4%, indicating that McEwen is performing better than this peer as well [4] - Both McEwen and Equinox Gold have a Zacks Rank of 2 (Buy), suggesting a favorable outlook for both stocks [3][5]