McEwen Signs US$55 Million Agreement to Sell Fuller and Paymaster

US$50 million of the sale consideration will be Discovery shares rather than cash, with a four-month-and-one-day hold period.

Rhea-AI Summary

McEwen (MUX) signed a definitive agreement to sell its Fuller and Paymaster interests to Discovery subsidiary Dome Mine for US$55 million. The sale includes all of Fuller, its 60% Paymaster interest and a surface-rights parcel in Timmins, Ontario. Consideration comprises US$5 million cash and US$50 million in Discovery shares, subject to a four-month-and-one-day hold. Closing remains subject to TSX approval for the share issuance.

McEwen also received US$13.5 million by assigning its McEwen Copper loan receivable to third-party lenders; related incentive warrants were cancelled. The company expects both transactions to provide approximately US$68.5 million for growth capital spending and development. McEwen targets annual production of 250,000–300,000 gold equivalent ounces by 2030 with minimal to no share dilution. Stock Mine production is expected in Q4 2026; El Gallo production is targeted for H2 2027.

6 points · 0 major

PositiveiHow this balance works

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0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointFuller, the 60% Paymaster interest and a surface-rights parcel sale agreed for US$55 million. 5.2% of market cap
• Moderate pointMcEwen Copper loan receivable assignment generated US$13.5 million in cash from third-party lenders. 1.3% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.McEwen targets 250,000–300,000 gold equivalent ounces annually by 2030 with minimal to no share dilution.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Stock Mine production expected in Q4 2026, with commercial production expected in Q1 2027.
• Moderate point. Forward-looking: it has not happened yet and may not happen.El Gallo construction began in September 2026; production is targeted for H2 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Surface work and equipment purchases are planned at Grey Fox, Tartan and the Gold Bar Complex.

Negative

• Minor pointUS$50 million in Discovery shares carries a statutory four-month-and-one-day hold period.
• Minor pointSale closing remains subject to TSX approval for issuance of the Discovery shares.
• Minor pointMcEwen Copper incentive share purchase warrants previously issued to McEwen were cancelled.

News Explained

The sale remains subject to customary closing conditions, including TSX approval. Although the US$50 million share consideration is stated in value, the number of Discovery shares McEwen receives will be set using a five-day volume-weighted average price ending two business days before closing, so the share count is not yet fixed.

Argus 15 min delay 8 alerts

+3.98% vs previous close $18.01 last price 1.0x rel. volume Open Argus

Details

Market move: MUX +3.98% vs previous close. Fuller-Paymaster asset sale

$17.52 – $18.06 Day Range

$1.11B Market Cap

On Oct 9, the day this news came out, the latest delayed price for MUX is 3.98% above the previous close. Our momentum scanner has recorded 8 alerts for this stock so far that day. The latest delayed price is $18.01.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Total purchase price: US$55 million Cash consideration: US$5.0 million Discovery share consideration: US$50.0 million +3 more

Total purchase price

US$55 million

Consideration for the Fuller, Paymaster and surface-rights assets

Cash consideration

US$5.0 million

Cash portion of the purchase price

Discovery share consideration

US$50.0 million

Payable in Discovery common shares

Receivable assignment proceeds

US$13.5 million

Cash received for assigning McEwen's pre-existing McEwen Copper loan receivable

Paymaster interest sold

60%

Lexam's interest in the Paymaster property joint venture

Share hold period

Four months and one day

Statutory hold on Discovery shares issued to McEwen

Historical Context

1 past event · Latest: Aug 27

1 event

1. Aug 27

   Copper term loan

   24h Move

   -5.6%

   McEwen Copper closed a US$240 million four-year term loan; this release reports a US$13.5 million receipt tied to closing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

asset purchase and sale agreement, volume-weighted average share price, statutory hold period, warrants

4 terms

asset purchase and sale agreement financial

"entered into a definitive asset purchase and sale agreement"

A contract in which a buyer agrees to acquire specified assets of a business (such as equipment, inventory, contracts, intellectual property and receivables) and the seller agrees to transfer those assets for an agreed price and terms. The agreement lists exactly which assets and which liabilities, sets the purchase price and its allocation, and contains closing conditions, representations and warranties, covenants and indemnities; unlike a share or equity purchase, it transfers chosen assets rather than ownership of the legal entity and typically limits the buyer’s assumption of the seller’s historic liabilities to those expressly assumed.

volume-weighted average share price financial

"based on the five-day volume-weighted average share price"

Volume-weighted average share price (VWAP) is the average price a stock trades at over a given period, where each trade’s price is weighted by how many shares changed hands; bigger trades count more than smaller ones. Investors use it as a benchmark to judge whether a trade executed at a good price and to spot short-term market direction—think of it like a weighted classroom average where students with more credits influence the final grade more.

statutory hold period regulatory

"subject to a statutory four-month-and-one-day hold period"

A statutory hold period is a legally required time window during which newly issued securities or shares received by insiders cannot be sold. It matters to investors because it affects when those shares can enter the market, influencing supply, short-term liquidity and potential price pressure—think of it like a temporary “no-sell” tag that prevents an immediate flood of items onto a store shelf after a big restock.

warrants financial

"the incentive share purchase warrants previously issued to the Company"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

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Divests US$13.5M McEwen Copper Debt to Further Enhance Liquidity

TORONTO, Oct. 09, 2026 (GLOBE NEWSWIRE) -- McEwen Inc. (NYSE/TSX: MUX) (“McEwen” or the “Company”) announces that it and its wholly-owned subsidiaries Lexam VG Gold Inc. ("Lexam") and VG Holdings Inc. ("VG" and collectively with Lexam, the "McEwen Subsidiaries") have entered into a definitive asset purchase and sale agreement (the "APA") with Dome Mine Ltd. ("Dome"), a wholly-owned subsidiary of Discovery Mining Ltd. (“Discovery”), pursuant to which the McEwen Subsidiaries have agreed to sell to Dome all of the right, title and interest in and to (i) the Fuller property located in Timmins, Ontario, which is wholly owned by Lexam, (ii) Lexam's 60% interest in the Paymaster property located in Timmins, Ontario, which Lexam holds in joint venture with Dome, and (iii) a surface rights only parcel located in Timmins, Ontario, which is wholly owned by VG, for total consideration of US$55 million (the "Purchase Price").

The transaction will monetize non-core assets and provide McEwen with US$55 million of additional capital, which the Company plans to invest across its operations and development projects to support its goal of producing 250,000–300,000 gold equivalent ounces (“GEOs”) annually by 2030 with minimal to no share dilution.

Fuller and Paymaster Properties

The Fuller and Paymaster properties are part of McEwen’s broader Fox Complex land position in the Timmins mining district. Fuller covers approximately 210 hectares and Paymaster approximately 179 hectares. Upon closing, Discovery will acquire McEwen’s full interest in both assets and consolidate 100% ownership of the Paymaster joint venture. At the Fox Complex, McEwen’s operations and development will remain centered on Froome, Stock and Grey Fox, as previously outlined in the Company’s growth strategy.

Transaction Terms

Under the terms of the APA, the Purchase Price shall be comprised of (i) US$5.0 million payable in cash and (ii) US$50.0 million payable in common shares in the capital of Discovery ("Discovery Shares"). The number of Discovery Shares to be issued will be determined based on the five-day volume-weighted average share price of the Discovery Shares on the TSX ending two business days before the closing date. For purposes of determining the number of Discovery Shares issuable, the US dollar-denominated share consideration will be converted into Canadian dollars at the Bank of Canada daily exchange rate in effect on such date. The Discovery Shares issued to the Company will be subject to a statutory four-month-and-one-day hold period.

The transaction is expected to close following satisfaction of customary closing conditions, including TSX approval for the issuance of the Discovery shares.

Advancing McEwen’s Growth Strategy

McEwen’s growth strategy is focused on expanding production from its existing asset base, lowering costs and increasing cash flow, while avoiding share dilution. The Fox Complex is entering a new phase of production growth, with the Stock Mine expected to enter production in Q4 2026 and commercial production in Q1 2027. Construction at El Gallo in Mexico began in September 2026 and production is targeted for H2 2027. Surface work and equipment purchases are also planned at Grey Fox, Tartan and the Gold Bar Complex as the Company advances its stated growth objectives.

Enhancing Liquidity

In addition to the gross proceeds of US$55 million expected from the transaction, the Company has also received US$13.5 million in connection with the closing of the US$240 million McEwen Copper term loan announced on August 27^th, 2026. McEwen Inc. assigned its pre-existing loan receivable of US$13.5 million to new third-party lenders for cash consideration and the incentive share purchase warrants previously issued to the Company by McEwen Copper were cancelled. In aggregate, these two transactions should provide approximately US$68.5 million of additional capital for growth capex and other development expenses.

ABOUT MCEWEN

McEwen shares trade on both the NYSE and TSX under the ticker MUX.

McEwen provides its shareholders with exposure to a growing base of gold and silver production in addition to a very large copper development project, all in the Americas. The gold and silver mines are in prolific mineral-rich regions of the world: the Cortez Trend in Nevada, USA, the Timmins district of Ontario and Flin Flon in Manitoba, Canada, and the Deseado Massif in Santa Cruz province, Argentina. McEwen is also reactivating its El Gallo gold and silver mine in Mexico.

The Company has a 46.3% interest in McEwen Copper, which owns the large, long-life, advanced-stage Los Azules copper development project in San Juan province, Argentina – a region that hosts some of the country’s largest copper deposits. Based on McEwen Copper’s last financing in October 2024, the implied value of McEwen’s ownership interest was US$456 million. Since then, the value of Los Azules has improved for three important reasons: 1) The copper price is 50% higher, 2) The Company has completed a Feasibility Study using a US$4.35/lb copper price and 3) Los Azules received approval under Argentina’s Large Investment Regime (RIGI), which significantly improves the economics of the project. Los Azules is a shovel-ready project designed to be one of the world’s first regenerative copper mines and carbon neutral by 2038.

McEwen also owns a 1.25% NSR on Los Azules. Based on the 2025 Feasibility Study and using a recent copper spot price of US$6.50/lb, McEwen’s royalty is projected to generate approximately US$584 million from the initial case and US$860 million from the potential Nuton extension, for a combined undiscounted pre-tax royalty cash flow of approximately US$1.4 billion.

McEwen has a 27% interest in Paragon Advanced Labs Inc., a public company that is deploying PhotonAssay™ units around the world, a technology that the Company believes is poised to become the new industry standard for assaying precious and base metals, with Paragon aiming to be one of the leading service providers.

Chairman and Chief Owner Rob McEwen has invested over US$290 million personally and takes a salary of $1 per year, aligning his interests with shareholders. He is a recipient of the Order of Canada, a member of the Canadian Mining Hall of Fame and a winner of the EY Entrepreneur of the Year (Energy) award. His objective is to build MUX’s profitability and share value, as he did while building Goldcorp Inc.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

The forward-looking statements and information expressed are as at the date of this news release and are McEwen Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Forward-looking statements in this news release include, but are not limited to, statements regarding: the expected completion of the transaction and timing thereof; acceptance of the issuance of the Discovery Shares by the TSX; the anticipated use of proceeds from the transaction; the Company’s production targets of 250,000–300,000 gold equivalent ounces annually by 2030; and the Company’s ability to achieve its growth strategy with minimal to no share dilution. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to: the inability to complete the transaction contemplated by the APA on the expected timeline or at all; the inability to obtain acceptance of the issuance of the Discovery Shares by the TSX; the inability to satisfy or waive all conditions to completion of the transaction contemplated by the APA; fluctuations in the trading price of Discovery Shares on the TSX; fluctuations in the currency exchange rate of the United States dollar and the Canadian dollar; fluctuations in the market price of precious and base metals; mining industry risks; political, economic, social and security risks associated with foreign operations; the ability of the Company to receive or receive in a timely manner permits or other approvals required in connection with operations; risks associated with the construction of mining operations and commencement of production and the projected costs thereof; risks related to litigation; the state of the capital markets; environmental risks and hazards; uncertainty as to calculation of mineral resources and reserves; foreign exchange volatility; foreign exchange controls; foreign currency risk; and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings with the Securities and Exchange Commission and Canadian securities regulators, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by the management of McEwen.

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	WEB SITE		SOCIAL MEDIA
	www.mcewenmining.com		McEwen	Facebook:	facebook.com/mceweninc
				LinkedIn:	linkedin.com/company/mceweninc
	CONTACT INFORMATION			X:	X.com/mceweninc
	150 King Street West			Instagram:	instagram.com/mceweninc
	Suite 2800, PO Box 24
	Toronto, ON, Canada		McEwen Copper	Facebook:	facebook.com/mcewencopper
	M5H 1J9			LinkedIn:	linkedin.com/company/mcewencopper
				X:	X.com/mcewencopper
	Investor Relations			Instagram:	instagram.com/mcewencopper
	(866)-441-0690 - Toll free line
	(647)-258-0395		Rob McEwen	Facebook:	facebook.com/mcewenrob
	Mihaela Iancu ext. 2006			LinkedIn:	linkedin.com/in/robert-mcewen-646ab24
	info@mcewenmining.com			X:	X.com/robmcewenmux

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What will McEwen receive for the Fuller and Paymaster sale?

McEwen will receive US$55 million, comprising US$5.0 million in cash and US$50.0 million in Discovery common shares. The agreed sale covers Fuller, McEwen's 60% Paymaster interest and a surface-rights-only parcel in Timmins, Ontario.

How are Discovery shares priced for McEwen's Fuller and Paymaster sale?

The share count will use Discovery's five-day volume-weighted average share price on the TSX ending two business days before closing. The US-dollar share consideration will be converted into Canadian dollars using the Bank of Canada daily exchange rate in effect on that date.

Which Fox Complex properties will McEwen focus on after the Fuller and Paymaster sale?

McEwen's Fox Complex operations and development will remain centered on Froome, Stock and Grey Fox. Upon closing, Discovery will acquire McEwen's full interests in Fuller and Paymaster and consolidate 100% ownership of the Paymaster joint venture.