McEwen Mining Inc. announced on February 11, 2025, the successful closing of its upsized offering of $110 million aggregate principal amount of 5.25% convertible senior unsecured notes due 2030. This amount includes the full exercise of the $15 million option granted to the initial purchasers.
The initial conversion price for the notes is approximately $11.25 per share, representing a 30% premium to the closing sale price on February 6, 2025. Capped call transactions were included to potentially increase the effective conversion price to $17.30 per share, a 100% premium, thereby mitigating potential share dilution.
Net proceeds from the offering were approximately $90.7 million after deducting offering costs and the cost of capped call transactions. Of these proceeds, $20.0 million was used to voluntarily repay a portion of the term loan principal, reducing the outstanding balance. The remaining net proceeds are allocated for general corporate purposes and advancing growth initiatives at the Fox Complex.
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