Britannia sells Paragon stake to McEwen for $11.3M

Executive Summary

• Britannia Life Sciences Inc. entered into a share exchange agreement to acquire 648,002 common shares of Britannia Mining Solutions Inc. (doing business as Paragon Geochemical Laboratories Inc.) from McEwen Inc.
• The transaction is valued at approximately $11.3 million, payable in common shares of McEwen Inc. at a deemed price of $17.50 per Paragon share.
• Britannia is also extending the closing of its previously announced debenture offering until November 30, 2025.

Key Details

• Transaction Structure: Britannia Life Sciences acquires 648,002 common shares of Britannia Mining Solutions Inc. (Paragon) from McEwen Inc.
• Consideration: The total consideration is valued at approximately $11.3 million.
• Payment Method: Payable in common shares of McEwen Inc.
• Share Price: The deemed price for the Paragon shares is $17.50 per share.
• Strategic Rationale: Britannia states the transaction crystallizes value for shareholders and provides exposure to a diversified mining platform. Britannia founded Paragon in 2022, which is a provider of advanced analytical services using PhotonAssay technology.
• Debenture Financing Update: Britannia announced it will extend the closing of its previously announced debenture offering until November 30, 2025. Initial interest has been described as encouraging, with the company continuing to engage prospective investors.
• Company Background (Paragon): Paragon is globally recognized for deploying PhotonAssay technology, considered a potential new industry standard for assaying precious and base metals. Britannia Mining Solutions plans to deploy the largest commercially available fleet of PhotonAssay machines globally by the end of 2025.
• Company Background (McEwen): McEwen Inc. trades on the NYSE and TSX under ticker MUX. It holds interests in gold, silver, and copper projects in the Americas, including the Los Azules copper development project in Argentina.

Notable Quotes

• "This transaction marks another significant milestone in Britannia's strategy to unlock value from our portfolio of innovative science and technology businesses at a time where we continue to evaluate opportunities for our platform, including the creation of an asset-backed lending platform," said Peter Shippen, chief executive officer of Britannia Life Sciences. "By realizing value from our holdings in Paragon, we are strengthening Britannia's position to invest in other cash generative businesses to drive returns for our shareholders."