McEwen Inc. Sells Non-Core Assets for $55M

TORONTO, Oct. 09, 2026 /CourierPR/ -- McEwen Inc., a publicly traded company listed on the NYSE and TSX under the ticker MUX, has announced a significant asset sale that will see its wholly-owned subsidiaries Lexam VG Gold Inc. and VG Holdings Inc. sell off certain properties to Discovery Mining Ltd., a subsidiary of Discovery Mining Ltd. The transaction involves the sale of the Fuller property, located in Timmins, Ontario, which is wholly owned by Lexam, and Lexam's 60% interest in the Paymaster property, located in Timmins, Ontario, which Lexam holds in a joint venture with Discovery. In addition, VG will sell a surface rights only parcel located in Timmins, Ontario, which is wholly owned by VG. The total consideration for this transaction is US$55 million, with US$5.0 million payable in cash and US$50.0 million payable in common shares in the capital of Discovery.

This sale is part of McEwen Inc.'s broader strategy to monetize non-core assets and provide the company with additional capital. The US$55 million of proceeds will be reinvested across the company's 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. 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, while Paymaster covers 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.

The transaction is expected to close following the satisfaction of customary closing conditions, including TSX approval for the issuance of the Discovery shares. In addition to the gross proceeds of US$55 million expected from the transaction, McEwen Inc. has also received US$13.5 million in connection with the closing of the US$240 million McEwen Copper term loan announced on August 27th, 2026. This brings the total capital available for growth capex and other development expenses to approximately US$68.5 million.

The sale of these properties will allow McEwen Inc. to focus on its core assets and operations, including the Stock Mine, which is expected to enter production in Q4 2026 and commercial production in Q1 2027. Construction at El Gallo in Mexico began in September 2026, with production 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.

McEwen Inc. has a 46.3% interest in McEwen Copper, which owns the Los Azules copper development project in San Juan province, Argentina. The value of Los Azules has improved significantly since McEwen Copper's last financing in October 2024, with the copper price being 50% higher, and the company having completed a Feasibility Study using a US$4.35/lb copper price. 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, which 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 Inc. 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.

McEwen Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by the management of McEwen.