McEwen Inc. (NYSE: MUX) (TSE: MUX) has agreed to acquire Golden Lake Exploration Inc. (CNSX: GLM) in an all-share deal that would fold a small Nevada explorer into its Gold Bar Mine Complex.
The companies signed a definitive agreement on January 28, 2026 where Golden Lake would become a subsidiary of McEwen. Consequently, McEwen would consolidate a package of exploration ground next to its existing discoveries in eastern Nevada.
Golden Lake’s main assets are the Jewel Ridge and Jewel Ridge West projects in the Eureka Mining District. The properties sit adjacent to McEwen’s Windfall and Lookout Mountain discoveries, which form part of the broader Gold Bar Mine Complex. Additionally, the proximity allows McEwen to treat the ground as a natural extension of its current exploration footprint.
Historical drilling at Jewel Ridge returned several long intercepts with gold mineralization. Those results included 2.20 grams per tonne gold over 28.96 metres, 1.24 grams per tonne over 56.39 metres, and 2.37 grams per tonne over 67.57 metres. Meanwhile, McEwen recently reported a drill hole at Windfall that returned 5.55 grams per tonne gold over 44.2 metres.
McEwen plans to integrate the Jewel Ridge properties into the Gold Bar Mine Complex. Further, the company intends to use existing infrastructure to reduce exploration and development costs. Management believes the added land position supports its strategy of turning Gold Bar into a longer-life operation with rising production.
Golden Lake shareholders would receive McEwen shares based on a fixed exchange ratio under the transaction. Each Golden Lake common share would be exchanged for 0.003876 McEwen common shares. That ratio reflects an implied offer price of CAD$0.12 per Golden Lake share.
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The implied price represents a premium of about 60 per cent to Golden Lake’s 20-day volume-weighted average price as of January 26, 2026. Consequently, Golden Lake investors would receive a substantial uplift compared with recent trading levels. Following closing, existing Golden Lake shareholders would own roughly 0.5 per cent of the combined company.
The companies calculated the exchange ratio by dividing CAD$0.12 by the 20-day volume-weighted average trading price of McEwen shares on the Toronto Stock Exchange. Additionally, the ratio remains fixed under the arrangement agreement, subject to customary conditions.
For Golden Lake shareholders, the deal offers exposure to a larger and more diversified mining company. Access to McEwen’s Nevada technical team forms a central part of that appeal. That group has experience in gold exploration, open-pit mining, heap leaching, permitting, and mine development.
Golden Lake investors would also gain indirect exposure to McEwen’s broader portfolio. That portfolio includes producing operations, development projects, and royalties across several commodities. Furthermore, the dual U.S. and Canadian listings of McEwen shares provide greater liquidity than Golden Lake’s current trading profile.
For McEwen shareholders, the acquisition adds a block of ground directly beside existing operations. Management views the Jewel Ridge projects as a logical bolt-on rather than a standalone development. Additionally, the company expects continued exploration success to support a longer mine life at Gold Bar.
The transaction structure involves more than a simple share exchange. Under the plan of arrangement, Golden Lake would cashlessly exercise all outstanding warrants, then cancel them in exchange for shares reflecting their in-the-money value.
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Replacement options carry adjusted exercise prices
Golden Lake’s outstanding convertible notes would also convert into common shares. The conversion would reflect principal and accrued interest under the existing note terms. Subsequently, those shares would be exchanged for McEwen shares using the same exchange ratio.
Outstanding Golden Lake stock options would be replaced with McEwen options. The replacement options would carry adjusted exercise prices but preserve the same economic value. Consequently, optionholders would maintain equivalent exposure after closing.
The proposed transaction requires multiple approvals. Golden Lake must secure approval from at least 66 per cent of votes cast by shareholders, warrantholders, and noteholders. The company expects to hold a special meeting in March to seek that approval.
The agreement includes standard representations, warranties, and covenants. It also contains customary non-solicitation provisions in favour of McEwen. However, Golden Lake retains the right to consider superior proposals if required to meet its fiduciary duties.
If Golden Lake accepts a superior proposal in certain circumstances, it would owe McEwen a break fee of about CAD$250,000. Meanwhile, both companies must satisfy closing conditions before completing the arrangement.
McEwen positioned the deal as another step in reshaping Gold Bar from a short-life mine into a durable regional operation. Conversely, Golden Lake gains a pathway to advance its assets without raising significant new capital.
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