ZURICH (Reuters) – McEwen Mining (MUX.TO) is on a buying spree as the Canadian gold company aims to grow its market capitalization by more than five times to achieve its ambition of a listing on the S&P 500, chief owner Rob McEwen said on Tuesday.
The Toronto company is seeking to buy several assets, ideally distressed companies or mines whose owners are in financial difficulties, to help raise its market capitalization to $5 billion from under $1 billion now.
In May this year, Canadian resources magnate McEwen said he was giving himself two-to-three years to make his company only the second gold mining company in the S&P 500.
On Tuesday, in Zurich, where he was meeting investors, he stretched the deadline to four years. “We have to do some further M&A and have some further exploration success,” he said.
“I always favor distressed assets – they are a little more work, the market has to be a bit more patient, but that’s where you get your best value.” In August, McEwen bought the Black Fox mining complex in Timmins, Canada, for $35 million from Primero Mining Corp, which had invested more than $500 million, but sold it to reduce its debts.