McEwen Inc has signed agreements to acquire an approximate 31% equity interest in Britannia Mining Solutions Inc, increasing its exposure to the rising growth of PhotonAssay™ assaying technology in the process.
Britannia operates under the name Paragon Geochemical Laboratories Inc., a provider of advanced analytical services to the mining industry. Paragon is recognised for its deployment of PhotonAssay, a technology that McEwen believes is poised to become the new industry standard for assaying precious and base metals, with Paragon aiming to be one of the world’s leading service providers.
PhotonAssay is a rapid, accurate, and non-destructive method for assaying gold, silver and base metals that is transforming industry standards, according to Chrysos Corp, the owner of the technology. It offers significant advantages over traditional fire assay techniques, including faster turnaround times, improved accuracy and enhanced environmental safety. Paragon is deploying this technology to position itself at the forefront of analytical innovation in the mining sector.
McEwen currently employs PhotonAssay in its exploration programs at the Fox Complex in Ontario, Canada, and the Gold Bar Mine Complex in Nevada, USA. The technology enables faster data-driven decisions, optimises drilling strategies and accelerates exploration timelines, it says.
Paragon is an ISO 17025:2017-accredited geochemical laboratory serving mining clients across North America and soon globally. The company is young with aggressive growth plans, McEwen says, currently operating three laboratories, with eight additional sites to be constructed in key mining regions around the world over the next two years. Paragon is also in the process of becoming publicly traded.
McEwen will acquire this strategic investment by purchasing 648,002 shares of Paragon from Britannia Life Sciences Inc. and 226,286 shares from Paragon via a private placement, both at a deemed price of C$17.50 per Paragon share and payable in shares of McEwen, representing a total investment of C$15.3 million ($10.9 million).
Upon completion of the transaction, McEwen will become Paragon’s largest shareholder.
