06:31 AM EST, 02/07/2025 (MT Newswires) -- McEwen Mining ( MUX ) said late Thursday that it priced a private placement offering of $95 million in convertible senior notes due 2030.

The company said the initial conversion rate for the notes is 88.9284 shares per $1,000 principal amount of notes, which translates to an initial conversion price of about $11.25 per share.

The notes will be convertible into cash, McEwen Mining's ( MUX ) common stock, or a combination of both at the company's discretion, it added.

As part of the deal, the company said it granted the initial purchaser the option to purchase up to an additional $15 million of notes, to be settled within 13 days from the initial issuance.

The company said the notes will carry an interest rate of 5.25% per year, with interest payments due semi-annually, beginning Aug. 15.

McEwen Mining ( MUX ) said it plans to use the net proceeds from the offering, expected to close on Feb. 11, for several purposes, including covering the cost of a capped call overlay, repaying approximately $20 million of outstanding borrowings under its existing credit agreement, and funding general corporate needs.