McEwen Inc. and Canadian Gold Corp. Announce Closing of Arrangement

StockNews.AI • 3 days

BullishShort TermM&ACGC

High Materiality8/10

Information

TORONTO and FLIN FLON, Manitoba, Jan. 06, 2026 (GLOBE NEWSWIRE) -- McEwen Inc. (“McEwen”) (NYSE/TSX:...

AI Summary

McEwen Inc. has successfully completed its business combination with Canadian Gold Corp., approved by shareholders. This Arrangement significantly enhances McEwen's exploration potential and is expected to drive shareholder value as they also advance their mine plans and publish resource estimates in the near term.

Trading Thesis

Investors should consider MUX as a potential buy post-combination for growth prospects.

Market-Moving

The completion of MUX's business combination could boost investor confidence.
Canadian Gold's delisting is a significant step for MUX's operational consolidation.
Positive exploration outcomes from Tartan can directly impact MUX's valuation.
The potential for renewed production permitting may attract further interest in MUX shares.

Key Facts

Business combination completed under the Business Corporations Act (British Columbia).
Canadian Gold's shares will be exchanged at a ratio of 0.0225 MUX shares per share.
Rob McEwen, Chairman, holds a significant personal investment in MUX.
Los Azules, MUX's copper project, is set to be carbon neutral by 2038.

Companies Mentioned

Canadian Gold Corp. (CGC): Merged with McEwen, enhancing MUX's resource base.

M&A

The completion of the business combination represents a strategic move in resource consolidation, potentially enhancing MUX's market position and exploration capabilities. The focus on Tartan’s development aligns with industry trends towards sustainable mining practices.

FAQ

Why Bullish?

The successful merger with Canadian Gold strengthens MUX's resource portfolio, which should increase its market valuation, similar to past mergers in the mining sector that have led to share price appreciation.

How important is it?

This article outlines a crucial corporate development that will directly influence MUX's operational strategy and investor perception, indicating a strong likelihood of impacting its stock price positively.

Why Short Term?

Immediate effects will likely be seen as the market reacts to the merger completion and exploration updates, reminiscent of rapid industry reactions post-acquisition announcements.

Related Companies

CGC

McEwen Inc. Completes Business Combination with Canadian Gold Corp.

On January 6, 2026, McEwen Inc. (NYSE/TSX: MUX) announced the successful completion of its previously outlined business combination with Canadian Gold Corp.. This significant transaction was formalized through a statutory plan of arrangement (the “Arrangement”). The completion marks a pivotal moment for both companies and their stakeholders, especially given the growing interest in gold investments.

Details of the Arrangement

The Arrangement received the green light from Canadian Gold shareholders on December 5, 2025, with a subsequent final order from the British Columbia Supreme Court approving the deal on December 10, 2025. The Arrangement officially took effect at 8:00 a.m. Vancouver time on January 5, 2026, under Canada's Business Corporations Act.

According to the terms negotiated, each holder of a common share of Canadian Gold will receive 0.0225 McEwen shares for every Canadian Gold share held. Furthermore, Canadian Gold shares are set to be delisted from the TSX Venture Exchange after the market closes on January 7, 2026, and the company will apply to cease its reporting obligations under Canadian securities laws.

Future Plans and Shareholder Communication

Rob McEwen, Chairman and Chief Owner of MUX, expressed enthusiasm about the merger, stating, "This is an exciting time for gold investors. We see strong exploration and development potential of Tartan, which we believe will significantly contribute to shareholder value." He emphasized that immediate priorities include accelerating exploration, initiating mine plan engineering, and advancing production permitting to enable a timely restart of operations. An updated resource estimate is expected by the end of February.

Amending Agreement Details

In conjunction with the Arrangement, McEwen and Canadian Gold entered into an amending agreement to align with the requirements of the New York Stock Exchange (NYSE). Notably, Rob McEwen's shares will now be converted into subscription receipts instead of new McEwen shares. This strategic adjustment aims to comply with NYSE regulations while ensuring flexibility for shareholders. The exchange for subscription receipts will convert to McEwen shares subject to shareholder approval at the upcoming annual meeting.

It is important to note that the adjustments made through the Amending Agreement apply solely to Mr. McEwen and do not affect other Canadian Gold shareholders, who will receive McEwen shares as outlined.

Instructions for Canadian Gold Shareholders

Former Canadian Gold shareholders are advised that their certificates now grant them the right to receive McEwen shares. To claim their McEwen shares, registered shareholders must submit their share certificates or DRS advice along with a completed Letter of Transmittal, as detailed in the information circular dated October 30, 2025. For shareholders holding shares through brokers, it is recommended to contact the respective broker for instructions regarding the exchange process.

About McEwen Inc.

McEwen Inc. trades under the ticker MUX on both the NYSE and TSX. The company provides investors with exposure to expanding gold and silver production alongside a substantial copper development venture in the Americas. Key operating regions include:

Cortez Trend, Nevada, USA
Timmins district, Ontario, Canada
Deseado Massif, Santa Cruz province, Argentina
El Gallo gold and silver mine, Mexico (under reactivation)

Moreover, McEwen holds a 46.4% interest in McEwen Copper, which oversees the advanced Los Azules copper development project in San Juan province, Argentina. This project is poised to become one of the first regenerative copper mines globally by 2038. The estimated value of McEwen's stake in this project is about US$456 million.

The company is also expanding its technological front by investing in Paragon Advanced Labs Inc., a firm involved in pioneering assay technologies for precious and base metals.

Forward-Looking Statements

This announcement contains forward-looking information under Canadian securities legislation. Such statements include projections or expectations regarding future events or financial performance, which may differ from actual results. The forward-looking nature of this information reflects the uncertainties inherent in market conditions and the operational plans of McEwen Inc.