07:54 AM EDT, 07/28/2025 (MT Newswires) -- McEwen (MUX) and Canadian Gold said Monday they have signed a letter of intent under which McEwen will buy all issued and outstanding securities of Canadian Gold by way of a court-approved plan of arrangement.

Under the terms of the proposed deal, Canadian Gold shareholders would receive 0.0225 common stock of McEwen for every Canadian Gold share, the companies said.

After the transaction is completed, current Canadian Gold stockholders would own about 8.2% of the combined entity and Canadian Gold would become a wholly owned unit of McEwen, the parties added.

Canadian Gold's principal asset is its 100% ownership in the Tartan mine in Manitoba, Canada.

The proposed transaction has been approved by the boards of both companies, the parties said, adding that the letter of intent provides for the companies to sign a deal setting out the final terms of the proposed takeover.