McEwen to Sell Timmins Assets for $55 Million

The Tip Desk · October 13, 2026 · 2 min read

The gold miner will take $5 million in cash and $50 million in Discovery shares to fund a 250,000–300,000 gold-equivalent ounce production target by 2030.

McEwen Inc. (MUX) agreed to sell the Fuller property, Lexam’s 60% interest in the Paymaster property, and a surface-rights-only parcel in Timmins, Ontario, for US$55 million.

Consideration is US$5.0 million in cash and US$50.0 million in common shares of Discovery. The company will monetize non-core assets and provide US$55 million of additional capital, which it plans to invest across operations and development projects to support a goal of producing 250,000–300,000 gold equivalent ounces annually by 2030 with minimal to no share dilution.

The deal is structured as an asset purchase. Closing is expected after customary conditions, including TSX approval for the issuance of the Discovery shares.

McEwen had cash and equivalents of $56.5 million at March 31, 2026, and debt principal of $130.0 million, comprising $110.0 million of convertible notes due 2030 and a $20.0 million term loan. The company had 59.2 million shares outstanding at that date.

The Timmins package sits outside the Fox Complex and Gold Bar operations that produced the company’s 100%-owned gold output, and outside the 49%-owned San José mine that contributed to consolidated production. McEwen’s 46.3% stake in McEwen Copper carried an implied market value of $457 million, or $7.65 per MUX share, based on McEwen Copper’s October 24, 2024, financing at $30 a share.

The US$55 million will be deployed across existing operations and development work rather than as a standalone project. The 2030 production band of 250,000–300,000 gold equivalent ounces is the stated use of the proceeds, with the mix of cash and Discovery equity intended to limit new share issuance.

Discovery share issuance remains subject to TSX approval. Until that condition clears, the US$50.0 million equity portion is not cash in hand; only the US$5.0 million cash leg is immediate at closing.