On Nov. 8, McEwen Mining (TSX: MUX; NYSE: MUX) entered an equity distribution agreement with UBS Securities, BMO Capital Markets, Cantor Fitzgerald & Co., H.C. Wainwright & Co., Roth Capital Partners and Alliance Global Partners to offer up to US$90 million of its common stock in the United States. Under the terms of the at-the-market offering (ATM) filed with the U.S. Securities and Exchange Commission (SEC), the agents can sell stock in McEwen Mining at the current market price on the New York Stock Exchange and get a 2% commission of the gross sales price per share of the company’s common stock. ATMs have become a popular method of financing for companies in the U.S., helping them raise equity capital over time by selling new shares into the trading market at prevailing prices, rather than through traditional underwritten offerings of a fixed number of shares at a fixed price all at once. They are generally less expensive and less complicated to execute. Most companies disclose ATMs when they provide regular financial updates, such as during quarterly conference calls. The Northern Miner spoke with McEwen Mining founder Rob McEwen about the offering.
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