McEwen Mining Inc (TSX:MUX, NYSE:MUX) shares fell more than 5% after the company announced a US$16.1 million financing.
The gold and silver producer said proceeds from the private placement financing will be used to fund continued exploration and development at its Fox Complex in the Timmins region of Ontario.
Under Part 1 of the financing, McEwen Mining said it would place 788,000 flow-through shares at US$9.27 each in a private placement for proceeds of US$7.3 million.
Part 2 of the financing consists of a US$8.8 million private placement of 1,115,000 flow-through shares at a price of US$7.86.
The company noted that proceeds of the financing will be used exclusively for qualifying Canadian exploration expenditures (CEE) and Canadian development expenditures (CDE).
The company’s shares ended Wednesday 5.2% lower at C$9.77.
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 47.7% of McEwen Copper which owns the large, advanced-stage Los Azules copper project in Argentina.
Contact the author at stephen.gunnion@proactiveinvestors.com