McEwen Mining Completes Upsized $110 Million Offering of Convertible Senior Unsecured Notes

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].