Goliath Resources Closes $9,800,000 Non-Brokered
McEwen monetizes assets to fund growth capex while execution risks persist at the Gold Bar project.
McEwen Inc. has entered into a definitive asset purchase agreement to sell its Fuller property and a 60% interest in the Paymaster property, located in Timmins, Ontario, to Dome Mine Ltd., a subsidiary of Discovery Mining Ltd. The total consideration for the transaction is US$55 million, structured as US$5 million in cash and US$50 million in Discovery Mining common shares.
The sale is part of McEwen’s strategy to monetize non-core assets to fund growth capital expenditures, with the company targeting an annual production of 250,000 to 300,000 gold-equivalent ounces by 2030 while minimizing share dilution. Combined with a recently closed US$240 million term loan for McEwen Copper, which provided US$13.5 million in cash from a loan receivable assignment, the company secures approximately US$68.5 million in additional capital.
Discovery Mining shares issued as part of the deal are subject to a statutory four-month-and-one-day hold period. Closing is expected to occur after customary conditions, including approval from the Toronto Stock Exchange, are met.
McEwen Inc. (MUX) is proceeding with the sale of its Gold Bar assets, a move that aligns with the company’s stated capital allocation strategy of monetizing non-core properties to fund growth capital expenditures without significant equity dilution. The transaction provides necessary liquidity for the ramp-up of the Stock Mine and the construction of El Gallo, while leaving the core production profile, reserve base, and net asset value unchanged.
Following the announcement, the company’s shares declined from approximately $25.50 in early October to around $21.15 by month-end. This market reaction suggests investors are pricing in execution risks associated with Gold Bar and broader macroeconomic headwinds rather than reacting to the expected capital raise.
McEwen Inc. operates a diversified portfolio of gold, silver, and copper assets across Canada, the US, and Argentina. Its core producing assets include the Fox Complex in Ontario, the Gold Bar Mine Complex in Nevada, and a 49% interest in the San José Mine in Argentina.
The company also holds advanced development projects, including the Los Azules copper project in Argentina, the El Gallo gold and silver project in Mexico, and the Tartan gold project in Manitoba. McEwen is positioned to scale production through internal cash flow, asset monetization, and the upcoming McEwen Copper IPO.