TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) said that it is seeing “significant developments” at the Los Azules copper project in Argentina operated by McEwen Mining Inc (TSX:MUX, NYSE:MUX).
TNR holds a 0.4% net smelter returns royalty on the project, of which 0.04% of the 0.4% NSR Royalty is held on behalf of a shareholder.
Earlier this week McEwen Mining received an ARS $30 billion (~US$150 million) investment by Stellantis NV (NYSE:STLA, EPA:STLA), one of the world's leading automakers and mobility providers with brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, and Jeep, to advance the development of Los Azules copper project.
READ: TNR Gold reveals positive update on its NSR royalty on Los Azules Copper Project in Argentina
Giving effect to the upcoming investment by Nuton LLC, also announced today, Stellantis owns 14.2% of McEwen Copper and McEwen Mining owns 51.9% on a fully diluted basis. The Transaction values McEwen Copper at approximately US$550 million.
According to Stellantis CEO Carlos Tavares, the firm intends to lead the industry with the commitment to be carbon net zero by 2038, which requires “innovation and a complete redefinition of the entire business.”
“We are taking important steps in Argentina and Brazil, with the aim of decarbonizing mobility and ensuring strategic supplies of clean energy and raw materials necessary for the success of the company's global plans,” Tavares said in a statement.
Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence. Its current copper resources are estimated at 10.2 billion pounds at a grade of 0.48% Cu (Indicated category) and an additional 19.3 billion pounds at a grade of 0.33% Cu (Inferred category).
Vote of confidence for Los Azules
For Vancouver-based TNR Gold, which advances high-quality global exploration properties through a project generation model, the transaction serves as a boost of confidence.
"We are pleased to see that significant developments on the advancement of the Los Azules Project towards feasibility have brought Stellantis as a strategic partner in the future development of this giant copper, gold and silver project," Kirill Klip, TNR's CEO said in a statement.
"TNR Gold's vision is aligned with the leaders of innovation among automakers like Stellantis, with the aim of decarbonizing mobility, and our mining industry leaders like Rob McEwen, with a vision to build a mine for the future, based on regenerative principles that can achieve net zero carbon emissions by 2038.”
According to Klip, the green energy “rEVolution” relies on the supply of critical metals like copper. Delivering “green copper" to Argentina and the world will contribute to the clean energy transition and electrification of transportation and energy industries, the CEO told shareholders.
“It's very encouraging to see the opportunity to expand the deposit, and the involvement of Rio Tinto, which may accelerate realizing the enormous potential of the Los Azules Project with Rio Tinto's innovative technology,” Klip added, noting that TNR does not have to contribute any capital for the development of Los Azules.
“The essence of our business model is to have industry leaders like McEwen Mining as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
TNR also holds a 1.5% NSR royalty on the Mariana Lithium Project in Argentina, of which 0.15% NSR royalty is held on behalf of a shareholder. Ganfeng Lithium's subsidiary, Litio Minera Argentina, has the right to repurchase 1.0% of the NSR royalty on the Mariana project, of which 0.9% is the company's NSR royalty interest. TNR would receive C$900,000 and its shareholder would receive C$100,000 on the repurchase by LMA, resulting in TNR holding a 0.45% NSR royalty and its shareholder holding a 0.05% NSR royalty.
Contact Angela at angela@proactiveinvestors.com
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