Timberline Resources Announces Merger with McEwen Mining

Timberline Resources Corporation disclosed that it will merge with McEwen Mining Inc. This transaction will involve McEwen acquiring all outstanding shares of Timberline at a notable premium. Under the terms of the agreement, Timberline shareholders are set to receive 0.01 of a McEwen share for each Timberline share they hold. The merger values Timberline shares at US$0.102 each, a 132% premium over their recent average price.

The deal projects a total undiluted equity transaction value of approximately US$19.4 million. Timberline's CEO, Patrick Highsmith, remarked that the merger allows shareholders to benefit from a diversified platform while continuing to have exposure to Timberline's assets. Additionally, operational synergies between McEwen’s Gold Bar mine and Timberline’s Eureka project are expected.

Shareholders of Timberline are anticipated to vote on this transaction in a special meeting, with closure expected in the third quarter of 2024. The Board of Timberline has recommended approval of the merger, highlighting financial and strategic benefits. Moreover, an interim financing agreement between the corporations has been set up to support Timberline through the transition.