McEwen (TSX: MUX) has agreed to sell two non-core gold properties in Ontario, Canada, to Discovery Mining (TSX: DSV) for $55 million in cash and stock as it shifts capital toward a production expansion targeting up to 300,000 gold-equivalent ounces annually by 2030.
The transaction includes Lexam VG Gold’s wholly owned Fuller property, its 60% interest in the Paymaster property and a parcel of surface rights owned by VG Holdings. Both properties are part of McEwen’s Fox Complex land holdings in the Timmins mining district.
Fuller covers approximately 210 hectares, while Paymaster spans 179 hectares. Discovery, through its subsidiary Dome Mine, already holds the remaining 40% interest in Paymaster under a joint venture with McEwen.
The divestment comes as McEwen prepares to bring new mines into production across its portfolio. The company aims to reach 250,000 to 300,000 gold-equivalent ounces annually by 2030 while limiting shareholder dilution.
Production pipeline
McEwen plans to reinvest the sale proceeds across its operating mines and development projects, with its Ontario operations remaining focused on the Froome, Stock and Grey Fox properties.
At the Fox Complex, the Stock Mine is expected to begin production in the fourth quarter of 2026, followed by commercial production in the first quarter of 2027.
The company is also preparing surface work and equipment purchases at Grey Fox, Tartan and the Gold Bar Complex in Nevada.
In Mexico, construction began at the El Gallo project in September, with production targeted for the second half of 2027.
The planned investments will test McEwen’s ability to expand output across several operations while pursuing its goal of funding growth with minimal new share issuance.
