McEwen has signed a definitive agreement to purchase all issued and outstanding shares of Golden Lake Exploration, a mining company based in British Columbia, Canada, through a plan of arrangement.
Upon completion, Golden Lake would operate as a wholly owned subsidiary of McEwen.
The value of the transaction remains undisclosed.
The proposed transaction stipulates that each Golden Lake share will be exchanged for 0.003876 McEwen shares, equating to an offer price of C$0.12 per Golden Lake share.
This offer marks a 60% premium on the 20-day volume-weighted average price of Golden Lake shares as of 26 January 2026.
Post-transaction, Golden Lake shareholders are expected to hold approximately 0.5% of the newly combined entity.
Golden Lake's key assets include the Jewel Ridge and Jewel Ridge West projects in Nevada’s Eureka Mining District, which neighbour McEwen’s Windfall and Lookout Mountain discoveries in the US state.
The incorporation of Golden Lake's projects is expected to bolster the Gold Bar Mine Complex, transforming it into a long-term operation through exploration investments and the use of existing infrastructure.
Historical drilling data from the Jewel Ridge project has revealed highlights such as 2.20 grams per tonne (g/t) gold over 28.96m, 1.24g/t gold over 56.39m and 2.37g/t gold over 67.57m.
For Golden Lake shareholders, the acquisition promises integration with McEwen’s Gold Bar Mine Complex and access to its technical team with expertise in gold exploration, mining operations and development.
McEwen shareholders stand to benefit from enhanced drill results and continued advancement towards a long-life operation at the Gold Bar Mine Complex.
The transaction will proceed via a court-approved plan of arrangement under British Columbia law.
Approval from nearly 67% of votes cast by Golden Lake shareholders, warrant holders and noteholders is required at a special meeting expected in March 2026.
The agreement contains standard closing conditions, regulatory approvals from the Toronto and New York stock exchanges, and provisions allowing for superior proposals under fiduciary obligations.
A C$250,000 break fee is stipulated should certain conditions lead to termination.
In July 2025, McEwen entered into a binding letter of intent with Canadian Gold to acquire all its issued and outstanding securities, which would make the latter a wholly owned subsidiary of McEwen upon completion.
