McEwen Mining to acquire 31% equity in Britannia Mining Solutions

McEwen announced that it has signed agreements to acquire an approximately 31% equity interest in Britannia Mining Solutions, on a fully diluted basis. Britannia operates under the name Paragon Geochemical Laboratories, a provider of advanced analytical services to the mining industry. Paragon is recognized for its deployment of PhotonAssay, a technology that McEwen believes is poised to become the new industry standard for assaying precious and base metals, with Paragon aiming to be one of the world’s leading service providers. PhotonAssay is a rapid, accurate, and non-destructive method for assaying gold, silver and base metals that is transforming industry standards. The company currently operates 3 laboratories, with 8 additional sites to be constructed in key mining regions around the world over the next two years. Paragon is also in the process of becoming publicly traded. McEwen will acquire this strategic investment by purchasing 648,002 shares of Paragon from Britannia Life Sciences Inc. and 226,286 shares from Paragon via a private placement, both at a deemed price of C$17.50 per Paragon share and payable in shares of McEwen, representing a total investment of C$15.3M. Upon completion of the transaction, McEwen will become Paragon’s largest shareholder. Ian Ball, Vice-Chairman of McEwen, will join Paragon’s board at the time of listing. In addition, McEwen will have the right to nominate one additional board member.