McEwen Inc. has acquired a 31 % equity interest in Paragon Geochemical Laboratories Inc., a company operating under the name Britannia Mining Solutions Inc. The deal involved the purchase of 648,002 shares from Britannia Life Sciences Inc. and 226,286 shares from Paragon itself, at a deemed price of CDN$17.50 per share. The total investment of CDN$15.3 million was paid in McEwen shares, and the transaction grants McEwen the largest shareholder position and a seat on Paragon’s board, with the right to nominate an additional board member.
Paragon’s PhotonAssay technology provides rapid, accurate, non‑destructive assay of gold, silver and base metals. McEwen already uses the technology at its Fox Complex in Ontario and Gold Bar Mine Complex in Nevada. By acquiring a controlling stake, McEwen can integrate PhotonAssay more deeply into its exploration and production programs, potentially reducing assay turnaround times and improving decision‑making speed across its portfolio.
Paragon is ISO 17025:2017 accredited and plans to expand its laboratory network with eight additional sites over the next two years. The company is preparing for a public listing, positioning it as a leading service provider in the mining sector. The partnership gives Paragon access to McEwen’s mining operations and capital resources, while McEwen gains a strategic technology partner and expanded laboratory capacity.
McEwen’s recent financial performance shows a mixed picture. In 2023 the company reported a net income of $54.7 million, a turnaround from a $81.1 million loss in 2022, largely driven by an accounting gain from the deconsolidation of McEwen Copper. In Q4 2024 McEwen posted a net loss of $43.7 million, largely due to expenses related to the Los Azules copper development project in Argentina. Production in 2024 totaled 135,900 GEOs, meeting guidance, with Gold Bar and San Jose exceeding targets but Fox Complex falling below guidance because of a stope failure. The acquisition of Paragon’s assay capabilities is intended to support McEwen’s ongoing operational improvements and to offset cost pressures at its mines.
The transaction aligns with McEwen’s long‑term growth strategy by providing access to advanced assay technology, expanding laboratory capacity, and creating synergies between McEwen’s mining operations and Paragon’s service network. The partnership is expected to enhance McEwen’s exploration efficiency and support its transition to a more technology‑driven mining model.
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