McEwen has signed a binding LoI to acquire Canadian Gold, making it a wholly owned subsidiary. Canadian Gold shareholders would receive 0.0225 of a McEwen share per Canadian Gold share, valuing them at C$0.35 each, a 26% premium. Shareholders will own 8.2% of the combined entity.

Canadian Gold’s key asset is the Tartan Mine in Manitoba, Canada, a former high-grade producing mine with exploration potential. It also holds interests in the Hammond Reef and Malartic South properties in Ontario and Quebec, near major gold mines.

McEwen’s chairman Rob McEwen is excited about the Tartan Mine’s potential due to its high-grade gold deposit, existing infrastructure, and proximity to major gold mines. The mine is expected to restart operations within two to three years, with exploration potential supported by the recently optioned Tartan West property.

The acquisition is subject to court approval, shareholder votes, and regulatory consents, including from stock exchanges. Shareholder votes are expected by the end of 2025, with an agreement that allows Canadian Gold to consider superior proposals. The deal includes customary provisions and deal protection measures.

Read more at Yahoo Finance: McEwen signs LoI to acquire Canadian Gold