Canadian gold and silver producer McEwen Mining has unveiled flow-through financing of $16.1m (C$22.02m) to support the development of its Fox Complex in Ontario, Canada.

As part of the placement, McEwen plans to issue a total of more than 1.9 million shares.

The company is launching the placement in two separate parts, proceeds of which will be used exclusively for qualifying Canadian exploration expenditures (CEE) and Canadian development expenditures (CDE), it noted.

The first placement will include a private placement for 788,000 flow-through shares, each priced at $9.27. This placement will total around $7.3m.

Through the second placement, the company aims to raise $8.8m by a flow-through of 1.115 million shares at $7.86 a share.

Located in the Timmins Gold Mining Camp in northern Ontario, Fox Complex occupies nearly 7,000 hectares of land packages.

The total strike length is 200km and it is reputed to host many gold mines.

Fox Complex’s measured and indicated resources are said to be 3.041 million ounces (moz) of gold (Au) equivalent. The inferred resources are 1.154moz Au equivalent and the proven and probable resources are 64,000 ounces Au equivalent.

In 2022, McEwen Mining announced an expansion preliminary economic assessment to extend the mine life and to increase gold production at Fox Complex.

Last month, the company’s subsidiary, McEwen Copper, secured a binding agreement for $10m of investment from Nuton, a Rio Tinto Venture and existing McEwen Copper shareholder.

After closing, Nuton will own a 14.5% stake in McEwen Copper while McEwen Mining will own a 47.7% stake.