Rights Offering Shark Frenzy To Start Nov. 8th
IMO It's a MUX early Christmas G ift for Shareholders.
Buy 1 share at roughly 50 percent discount for every 10 shares you own now.
IMO buy as many as you can and hold them with a Kung Fu grip.
McEwen Mining Inc. ("McEwen Mining") (NYSE:MUX)(TSX:MUX)announced today that McEwen Mining and its wholly-owned subsidiary, McEwen Mining - Minera Andes Acquisition Corp. ("Exchange Co.") (TSX:MAQ), will launch transferrable rights offerings (the "Rights Offerings").
We are conducting two concurrent rights offerings because we have two classes of shares 
: common shares of McEwen Mining ("Common Shares"); and shares of Exchange Co. that are exchangeable on a 1-for-1 basis into Common Shares ("Exchangeable Shares"). The Rights Offerings will provide that holders of Common Shares and Exchangeable Shares will participate on an equal and proportional basis with other holders of the same class of shares in purchasing additional shares of the same class of shares at a considerable discount to the current listed price.
"I believe a rights offering, versus all other forms of financing, is the most fair to our shareholders. We are giving the Companies' current shareholders who have been supportive and loyal to the Company the first right on this financing. I am personally backstopping this financing for $60 million because I believe McEwen Mining has a bright future," said Rob McEwen, Chairman and Chief Owner.
-- Record date/time is set at 5:00 p.m. (EST) on November 8, 2012 (the
"Record Date").
-- How many shares will I be able to subscribe for? For each share you hold
on the Record Date you will receive one (1) subscription right to
acquire the same class of shares. For every ten (10) subscription rights
of the same class of shares you hold, you will be able to subscribe for
one (1) share of that same class of shares (subject to applicable law).
-- What will it cost to subscribe for a share? Upon the exercise of ten
(10) subscription rights each Common Share will cost US$2.25 or CDN$2.24
(if you reside in Canada) and each Exchangeable Share will cost
CDN$2.24. The price difference is reflective of the US$/CDN$ exchange
rate.
-- Rights Expiry Date: The Rights Offerings will be open until 5:00 p.m.
(EST) on December 4, 2012. Holders of subscription rights will need to
exercise their subscription rights prior to that time and date ("Expiry
Date")
-- How much will the Rights Offerings raise? Gross proceeds of
approximately $60m.
-- What will the funds raised be used for? (1) to fund the advancement of
the Company's El Gallo complex; (2) to complete metallurgical studies on
the Company's Tonkin project and follow-up work as required; (3) to
advance the permitting process and environmental impact study on the
Company's Gold Bar project; (4) to further explore the Company's various
projects and properties, and (5) for other corporate purposes.
-- How many shares will be issued? The Company expects to issue a total of
19,051,679 Common Shares and 7,798,762 Exchangeable Shares representing
approximately 10% of our current outstanding Common Shares (assuming the
conversion of the Exchangeable Shares issued in the Rights Offerings
into Common Shares).
-- Will this dilute my percentage share holdings? Your shareholdings will
not be diluted if you exercise your rights in full. If your rights go
unexercised or you sell your rights (see below), your percentage share
holdings will be diluted.
-- Can I sell my rights on the NYSE or TSX? Yes, shareholders who do not
wish to exercise their subscription rights will have the option of
selling their subscription rights to acquire the underlying Common
Shares through the New York Stock Exchange or the Toronto Stock Exchange
and their subscription rights to acquire the underlying Exchangeable
Shares on the Toronto Stock Exchange (subject to the New York Stock
Exchange and the Toronto Stock Exchange approving the trading of the
subscription rights and the listing and trading of the shares issuable
upon the exercise of such subscription rights).
-- Can I buy more shares? Perhaps. All shareholders of McEwen Mining and of
Exchange Co. will be offered an oversubscription privilege that allows
those shareholders that fully exercise their subscription rights the
opportunity to acquire, on a pro rata basis, additional Common Shares or
Exchangeable Shares, respectively, that remain unpurchased on the Expiry
Date.
-- When will I receive additional information? A rights certificate and a
prospectus or rights offering circular will be mailed to each
shareholder of McEwen Mining and Exchange Co. shortly following the
Record Date.
-- Backstop: Rob McEwen will be subscribing for all the subscription rights
made available to him as a result of his 25% ownership in McEwen Mining
(includes his Exchangeable Shares), but will not participate in the
oversubscription privilege thereunder. In addition, he has agreed to
backstop the Rights Offerings in their entirety. This means that if any
subscription rights remain un-exercised in the Rights Offerings
(including the oversubscription privilege) on the Expiry Date, the
unsubscribed Common Shares and Exchangeable Shares will be subscribed
for by Rob. This guarantees that the Rights Offerings will be fully
subscribed for. The Company will raise approximately US$60 million in
gross proceeds from the Rights Offerings.
