McEwen seeks $15m to continue exploration at Fox
Dual-listed McEwen Mining has announced a financing to fund continued exploration at the Fox Complex, in Timmins, Ontario.
The financing consists of a $15.08-million (C$19.21-million) private placement offering of 12.5-million flow-through shares at $1.04 each. The offering will close on March 1.
McEwen recently announced the results from the Fox Complex preliminary economic assessment (PEA), which outlined a 12-year mine plan, generating 71 980 oz/y at an all-in sustaining cost of $1 225/oz. Chairperson Rob McEwen said that the PEA was an encouraging first iteration, but stated that continuing exploration successes, improved economics and a shorter payback would be needed before the company would decide to proceed with the project.
McEwen noted that the PEA provided a sound basis for identifying where best to leverage exploration and delineation spending. Management was confident that mineral resources could be expanded in the Stock area with targeted drilling within 400 m from the surface at Stock West and Stock Main.
Recent exploration drilling has identified the host lithology (green carbonate unit) and similar mineralisation to the Stock West deposit nearer to surface, between the historical Stock mine infrastructure and the Destor-Porcupine Fault Zone. Evaluation of the extent of this unit and its mineralisation is underway.
The company stated that successfully delineating potentially economic mineralisation near surface, close to the proposed decline at Stock and adjacent to the Fox Mill could significantly improve near-term project economics and payback.
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