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McEwen Mining Inc. Message Board

  • dominic_marten dominic_marten Dec 27, 2012 3:23 PM Flag


    I initially owned MNEAF that converted to MCEEF after the merger @ .45. I was left with 3150 shares of MUX which I fully subscribed to the rights offering of 315 shares. I also oversubscribed an additional 2000 shares just because it was a deal.
    Here are the final numbers I received in my account today:
    Owned 3150 MCEEF and received 315 RO
    Oversubscribed for 2000 additional shares and received 1168
    Total of 1483 @ $2.25 per share. Awesome!
    In my other account through Ameritrade where I held MUX and also oversubscribed I only received 58% of my initial RO entitlement @ 10%.
    The old MNEAF shareholders missed a great opportunity to get more value as my initial .45 MUX shares for every MNEAF I held has essentially moved to .65 with this RO scenario. At the time I though .55 was a more fair merger deal. Rob came through again for us. Awesome!

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    • MUX is a great company.....I sold the rights......pocketed $3,000 and bought the real thing.....silver that is.....Mux runs me $.85/ share. ain't that nice? Once we get rolling, we'll reach $12 per share this year and $40 in 2014...of course gold will be @$2500. and silver @$60. Sit back and watch silver flly!

      Sentiment: Hold

    • I own 9000 MCEEF and received 900 RO.
      Oversubscribed for 500 additional shares and received 187 after it settled.
      Looks like I only got 21%, not 371% like you did or 58% like the MUX owners got.
      Did Schwab mess up? Is there anywhere we can find the official numbers for the MCEEF RO?
      Maybe I need to call MUX investor relations...

      • 1 Reply to davidstam
      • @David, I am just an MCEEF shareholder, but I've kept tabs on what people have reported on various message boards. The following is based on my observation of what those people have reported... and from reading McEwen Mining's website.

        There were two separate ROs, one for MUX, handled by an agent in the US, another for MAQ/MCEEF, handled by an agent in Canada. Both agents are from the same company, but two different branches, operating under different rules, US vs Canada.

        MUX shareholders who exercised their Rights, and requested at least 60% additional over-subscribed shares, received 158.6% the number of their exercised shares. That is, 100% of their exercised, plus another 58.6% of over-subscribed shares, regardless of how many more over-subscribed shares were requested.

        Many MAQ/MCEEF shareholders did not exercise their Rights, so there were far more over-subscribed shares available for those who asked. Based on very limited feedback I have seen for MAQ/MCEEF, it seems that they received 100% of their exercised shares, plus roughly 58-60% of all the over-subscribed shares that were requested. @dominic above received 58.4%, I received 59.9%, though I have no explanation for the difference... neither should be caused by round-off of +/- one share.

        Based on very limited feedback, I think you should have received nearly 300 over-subscribed MCEEF shares.

        I think you should check with Schwab. You didn't say when you received your shares, but Schwab seems to have taken by far the longest to get shares put into clients' accounts. They may be confused! Unlike the MUX shares, the Rights agent sent Schwab a single certificate for all the MCEEF shares that Schwab's clients were due. Schwab was responsible for delivering the correct number of shares to each client.

        Just to repeat, I do not know how the Rights agents allocated the shares. But based on reports, you seemed to have come up on the short end. Mistakes were made, and I have heard from two people who ended up with more than they should have. One in particular, didn't even request over-subscribed MCEEF shares, yet received 1000 shares anyway... his broker is Well Fargo, so he didn't get your shares. :)


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