New owner of Black Fox Mine promises to max out its potential
Mining magnate Rob McEwen has big plans for the Black Fox Mine complex, his company’s latest acquisition in the Timmins mining district. McEwen Mining announced the closing of a US$46.6 million bought deal offering on Sept. 22.
The money is earmarked for the purchase of Black Fox from Primero Mining and for general working purposes. The $35-million deal announced in August is expected to be finalized during the first week of October.
“The opportunity to buy Black Fox came together quickly and the timeframe to close was short, which meant that our financing options were limited to a bought deal or the issuance of debt,” said McEwen in a company news release.
“Weighing the alternatives, we decided that this offering represented the best option for our shareowners at this time.” Black Fox’s production target for 2018 is expected to be in the 50,000-gold ounce range.
“Black Fox reminds me a lot of the early days of the Red Lake Mine when I was building Goldcorp Inc. The mine is shallower than many of the larger mines in the Timmins area, and some of its best high-grade zones extend near the bottom of the known mineralization, suggesting there is good potential to grow the deposit at depth.”
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