TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) CEO Kirill Klip told shareholders that the company is pleased with another significant investment into its royalty project Los Azules, which is owned by McEwen Mining Inc (TSX:MUX, NYSE:MUX).
Earlier, McEwen Mining announced another US$30 million investment by Nuton LLC, a Rio Tinto venture.
TNR holds a 0.4% net smelter returns royalty (of which 0.04% of the 0.4% NSR Royalty is held on behalf of a shareholder) on the Los Azules project, which is located in San Juan, Argentina.
Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence in 2022.
According to a news release from McEwen Mining, Nuton has agreed to invest US$30 million to acquire shares of subsidiary McEwen Copper in a two-part transaction expected to close no later than March 10th, 2023.
The investment consists of a private placement of 350,000 McEwen Copper common shares, and the purchase of 1,250,000 common shares owned by McEwen Mining in a secondary sale.
Proceeds of the subscription and purchase are expected to be approximately US$6.5 million to McEwen Copper and US$23.5 million McEwen Mining, respectively, and will be used primarily to advance development of Los Azules.
In connection with the transaction, McEwen Copper and certain of its affiliates entered into an amended collaboration agreement and a copper cathodes and concentrates purchase rights agreement.
McEwen Copper CEO Rob McEwen said: "We are extremely pleased to have Nuton's strong continued participation in McEwen Copper. Together we are exploring new technologies that save energy, water, time and capital in the pursuit of delivering green copper to Argentina and the world, a product that will contribute to the electrification of transportation and the protection of our atmosphere."
Rio Tinto is the second-largest mining and metals company in the world, operating in 35 countries. Its Nuton division is a new venture that aims to help grow Rio Tinto's copper business. At the core of Nuton is a portfolio of proprietary copper leach-related technologies and capability - a product of almost 30 years of research and development.
'Aligned with the leaders of innovation'
"We are pleased 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. An additional US$30 million stake in McEwen Copper has been invested by Rio Tinto's Venture Nuton," stated Kirill Klip, TNR's CEO.
Klip told shareholders that TNR’s vision is “aligned with the leaders of innovation” such as automaker Stellantis, with the aim of decarbonizing mobility, and mining industry leaders like Rob McEwen.
"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.
“Together with Nuton, McEwen Copper is exploring new technologies that save energy, water, time and capital, advancing Los Azules towards the goal of the leading environmental performance.”
Klip noted that TNR Gold 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,” he said.
"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.”
Contact Angela at angela@proactiveinvestors.com
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