McEwen to Acquire 31% Strategic Interest in Paragon Geochemical, Leader of PhotonAssay(TM) Technology for the Mining Sector

Executive Summary

• McEwen Inc. signed agreements to acquire an approximately 31% fully‑diluted equity interest in Britannia Mining Solutions Inc., operating as Paragon Geochemical Laboratories Inc. (“Paragon”).
• The acquisition will be funded by the purchase of 648,002 shares from Britannia Life Sciences Inc. and 226,286 shares from Paragon via a private placement at a deemed price of CDN $17.50 per share, for a total consideration of roughly CDN $15.3 million payable in McEwen shares.
• Upon closing, McEwen will become Paragon’s largest shareholder; Ian Ball (Vice‑Chairman of McEwen) will join Paragon’s board and the company will have the right to nominate an additional director.

Key Details

• Target: Britannia Mining Solutions Inc., operating as Paragon Geochemical Laboratories Inc., a provider of advanced analytical services to the mining industry.
• Equity Acquired: ~31% on a fully diluted basis (largest shareholder).
• Purchase Price: CDN $17.50 per Paragon share (deemed price).
• Shares Purchased: 648,002 shares from Britannia Life Sciences Inc.; 226,286 shares from Paragon (private placement).
• Total Investment: Approximately CDN $15.3 million, payable in McEwen common shares.
• Board Representation: Ian Ball will join Paragon’s board at listing; McEwen entitled to nominate one additional director.
• Strategic Rationale: Access to PhotonAssay™ technology, which McEwen already uses in its exploration programs (Fox Complex, Ontario and Gold Bar Mine Complex, Nevada). The technology offers faster turnaround, higher accuracy, and environmental benefits over traditional fire assay methods.
• Paragon’s Capabilities: ISO 17025:2017‑accredited laboratory with 3 operating sites; plans to add 8 additional labs worldwide within two years; in process of becoming publicly traded.

Notable Quotes

(No direct quotes were included in the release.)