Cautions Shareholders at Annual General Meeting
Toronto, May 19, 2012 AEST (ABN Newswire) - McEwen Mining Inc. (
NYSE:MUX)(TSX:MUX) announces that at its Annual General Meeting in Toronto on May 17, 2012, Mr. Robert McEwen, Chairman, President and Chief Executive Officer, provided an overview of the company's current development plans and outlook for the price of gold.
The corporation announced that El Gallo Phase 1 remains on schedule and budget for the first gold pour during the third quarter. In addition, the San Jose mine remains on track to meet full year production guidance of 85,000 oz. of gold and 5.7 million oz. of silver (192,500 oz. gold equivalent, 49% of which is attributable to the company).
Mr. McEwen provided an overview of recent decrees announced by the government of Argentina and the possible adverse impact also on the mining industry. In particular, Mr. McEwen informed shareholders that the uncertainty related to the repatriation of funds from the San Jose mine could impair the company's ability to internally finance its projects. If these uncertainties persist, the company will need to seek external financing alternatives for the development of El Gallo Phase 2.
Despite current weakness in precious metals prices, Mr. McEwen also re-affirmed his view of the price of gold, which includes an ultimate target price of $5,000 oz by the end of this cycle.
About McEwen Mining Inc
McEwen Mining (NYSE:MUX) (TSE:MUX) has the goal to qualify for inclusion in the S&P 500 Index by creating a profitable gold and silver producer focused in the Americas. McEwen's principal assets consist of: the San José mine in Santa Cruz, Argentina (49% interest); the Black Fox mine in Timmins, Canada; the Fenix Project in Mexico; the Gold Bar mine in Nevada, currently under construction; and the large Los Azules copper project in Argentina, advancing towards development.
McEwen has approximately 345 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns roughly 23% of the shares.
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