Oversubscribed Private Placement Lifts Dually-Listed Junior Miner

By: Dylan Sikes – AllPennyStocks.com News

Wednesday, August 31, 2022

Private placements are the secret to a lot of smaller, publicly traded companies’ survival. It also opens a small window in order to catch a glimpse of investor interest depending on whether or not the full offering total was subscribed or not. In the case of McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE:MUX) (TSX:MUX), the company announced the closing of the final tranche of an offering in the subsidiary, which ended up being slightly oversubscribed, totallying $81.85 million.

McEwen Mining Inc is a mining and minerals production and exploration company focused on precious and base minerals in Argentina, Mexico, and the United States. The company's overall revenue is principally derived from the production of gold and silver, each comprising roughly half of total sales. The company owns and operates the wholly-owned El Gallo 1 mine in Mexico, and has a minority shareholding in the company that operates the San Jose mine in Argentina. More than half the company's gold output is produced by the El Gallo 1 mine. The remaining gold production, and majority of silver production, is produced by the San Jose mine.

The oversubscribed 8,000,000 share, $10.00 per common share offering included a $25 million investment by Rio Tinto’s copper technology venture, Nuton. Traders were naturally bullish on the news as shares climbed up to $4.11/share (+5.16%) on the Canadian exchange’s session high.

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