McEwen (TSX:MUX) has agreed to sell two non-core gold properties in Ontario, Canada, to Discovery Mining (TSX:DSV) in a deal valued at US$55 million ($78.85 million).
Under the agreement, Discovery will pay US$5 million and issue US$50 million worth of shares to acquire McEwen’s Fuller property, its 60% in the Paymaster property, and a surface-rights parcel in the Timmins mining district.
The number of shares issued will be determined using Discovery’s five-day volume-weighted average share price, calculated two trading days before closing.
Both properties form part of McEwen’s broader Fox Complex, with Fuller covering approximately 210 hectares and Paymaster spanning 179 hectares.
Discovery, through its subsidiary Dome Mine, holds the remaining 40% interest in Paymaster under a joint venture with McEwen.
Focus on production growth
McEwen says the sale will provide additional capital to support its growth strategy while minimising shareholder dilution.
The company is targeting annual production of 250,000–300,000 gold-equivalent ounces by 2030.
At the Fox Complex, McEwen says it will continue to focus operations and development activities on the Froome, Stock, and Grey Fox deposits.
The transaction comes right as the company prepares to enter a new phase of production growth.
The Stock Mine is expected to begin production in Q4 2026, followed by commercial production in Q1 2027.
McEwen is also planning surface work and equipment purchases at Grey Fox, Tartan, and the Gold Bar Complex in Nevada.
In Mexico, construction began at the El Gallo project last month, with production targeted for the second half of 2027.
Separately, McEwen says it has received US$13.5 million from assigning an existing loan receivable to third-party lenders following the closing of the US$240 million McEwen Copper term loan announced on 27 August.
McEwen is a gold and silver producer with exploration and development assets across Argentina, the US, Canada, and Mexico.
Write to Jackson Chen at Mining.com.au
Main image: McEwen
