McEwen Inc. (NYSE/TSX: MUX) has entered a definitive asset purchase and sale agreement to sell three Timmins, Ontario, land packages to Dome Mine Ltd., a wholly owned subsidiary of Discovery Mining Ltd., for US$55 million. The assets sit inside McEwen’s broader Fox Complex land position and were held through subsidiaries Lexam VG Gold Inc. and VG Holdings Inc.
The package includes the Fuller property (about 210 hectares, wholly owned by Lexam), Lexam’s 60 percent interest in the Paymaster property (about 179 hectares, held in joint venture with Dome), and a surface-rights-only parcel owned by VG Holdings. On closing, Discovery will acquire McEwen’s full interest in both properties and consolidate 100 percent ownership of the Paymaster joint venture.
McEwen said the sale monetizes non-core assets and provides US$55 million of additional capital to invest across its operations and development projects. The stated goal is producing 250,000 to 300,000 gold-equivalent ounces annually by 2030 with minimal to no share dilution. At the Fox Complex, McEwen’s operations and development will remain centered on Froome, Stock and Grey Fox, as previously outlined in the company’s growth strategy.