McEwen Inc. (NYSE/TSX: MUX) has entered into a definitive asset purchase and sale agreement to divest its Fuller and Paymaster properties in Timmins, Ontario, to Dome Mine Ltd., a wholly-owned subsidiary of Discovery Mining Ltd., for total consideration of US$55 million. The transaction monetises non-core assets from the Fox Complex land position, freeing capital the company intends to deploy across its operations and development projects. Combined with a separate US$13.5 million liquidity event tied to the McEwen Copper term loan, McEwen expects approximately US$68.5 million of additional capital for growth expenditures.

Key Points

  • McEwen Inc. (NYSE/TSX: MUX) announced the sale of its Fuller and Paymaster properties in Timmins, Ontario
  • Total consideration is US$55 million: US$5 million in cash and US$50 million in Discovery Mining Ltd. common shares
  • Combined with a US$13.5 million debt divestiture, total additional capital is approximately US$68.5 million
  • Investors may watch for TSX approval of Discovery share issuance and confirmation of closing conditions

Fuller and Paymaster Sale Terms and Structure

Under the definitive agreement, McEwen's wholly-owned subsidiaries Lexam VG Gold Inc. and VG Holdings Inc. will sell the Fuller property (approximately 210 hectares), Lexam's 60% interest in the Paymaster joint venture (approximately 179 hectares), and a surface rights parcel, all located in Timmins, Ontario. The US$55 million purchase price comprises US$5 million in cash and US$50 million in Discovery Mining common shares, with the share count determined by the five-day volume-weighted average price on the TSX ending two business days before closing. Issued Discovery shares will be subject to a statutory four-month-and-one-day hold period.

Fox Complex Operational Focus Remains on Froome, Stock, and Grey Fox

Following the divestiture, McEwen's Fox Complex activities will remain centred on the Froome, Stock, and Grey Fox assets, consistent with the company's previously outlined growth strategy. The Stock Mine is expected to enter production in Q4 2026 and reach commercial production in Q1 2027. The release states that Fuller and Paymaster were considered non-core relative to these advancing assets. The transaction is subject to customary closing conditions, including TSX approval for the issuance of Discovery shares, and no specific closing date was confirmed in the announcement.

McEwen Copper Debt Assignment Adds US$13.5 Million in Liquidity

Alongside the property sale, McEwen disclosed that it received US$13.5 million by assigning a pre-existing loan receivable to new third-party lenders as part of the closing of the US$240 million McEwen Copper term loan announced on August 27, 2026. Incentive share purchase warrants previously issued to the company by McEwen Copper were cancelled as part of this arrangement. Together, the two transactions are expected to provide approximately US$68.5 million in additional capital, which the company intends to direct toward growth capital expenditures and other development expenses.

Capital Deployment Targeting 250,000–300,000 GEOs Annually by 2030

McEwen states it plans to invest the combined proceeds across its operations and development projects in pursuit of its stated goal of producing 250,000–300,000 gold equivalent ounces annually by 2030 with minimal to no share dilution. Additional growth initiatives disclosed include construction at the El Gallo project in Mexico, which began in September 2026 with production targeted for H2 2027, and planned surface work and equipment purchases at Grey Fox, Tartan, and the Gold Bar Complex. The immediate share price impact was not clear from available public information.