Canadian miner McEwen Mining has entered into a definitive agreement and plan of merger to acquire all outstanding shares of Nevada-based Timberline Resources that it doesn’t already own.
McEwen currently owns 6.25 million Timberline shares, or around 3.3% of the company, along with 6.25 million warrants. Excluding McEwen’s existing ownership, the miner expects to issue approximately 1.84 million shares on closing for a transaction value of US$18.8 million.
The acquisition will extend McEwen’s existing portfolio of development and exploration projects in Nevada, which includes the Gold Bar mine in Eureka County.
“The merger with McEwen Mining, at an attractive premium to Timberline’s current trading price, provides our shareholders with continued exposure to Timberline’s assets as part of a more diverse growth-oriented platform,” said Timberline President and CEO Patrick Highsmith.
“The combination should also unlock synergies between the Gold Bar mine and our Eureka project.”
The deal is anticipated to close in the third quarter of 2024.
Sources: McEwen Mining and Timberline Resources