ONTARIO – McEwen Mining of Toronto has set about raising $12.9 million through a bought deal private placement. The proceeds will be used to accelerate exploration at the company’s newly acquired Black Fox mine near Timmins.
McEwen is on the hunt for more resources at the Black Fox complex near Timmins, Ont. (Image: McEwen Mining)
To raise the money, McEwen is issuing 4.0 million flow-through shares priced at $3.22 per share to a syndicate of investors led by Cantor Fitzgerald Canada. The price represents a 24.4% premium over McEwen’s closing share price on Nov. 30, 2017.
Deep exploration drilling below the bottom of the known mineralization is planned for the Black Fox gold mine. The current resource extends to a depth of 880 metres, compared to typical mines in the region that reach 1,200 to 1,600 metres below surface. Lateral drilling to the northwest and southeast of the mine will be done along the same geologic structure.
Of particular interest is the Tamarack zone adjacent to Black Fox. This zone is of interest both for its gold mineralization and for its zinc-lead-silver massive sulphide mineralization.
Also on the Black Fox property, McEwen will test the Froome and Grey Fox deposits located, respectively, 800 metres west and 4 km south of the mine. Froome has an underground indicated resource of 151,000 oz. of gold at a grade of 5.5 g/t. Grey Fox has an open pit indicated resource of 345,000 oz. of gold at a grade of 3.6 g/t, and an additional underground indicated resource of 323,000 oz. at a grade of 5.9 g/t.
Read more about the Black Fox complex at www.McEwenMining.com.