TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) has received a substantial financing update from McEwen Mining Inc (TSX:MUX, NYSE:MUX) regarding the Los Azules copper, gold, and silver project in San Juan, Argentina.
McEwen Copper, a subsidiary of McEwen Mining, successfully closed an additional 42 billion Argentine Peso (ARS) (US$120 million) investment from Stellantis, a global automaker, aimed at advancing the Los Azules copper project.
The investment, following a previous ARS30 billion infusion in February 2023, totals ARS72 billion (US$205.7 million). The proceeds from the private placement of 1.9 million common shares will be directed towards the development of the Los Azules copper project and general corporate purposes.
With this investment, Stellantis increases its ownership to 19.4% of McEwen Copper, valuing it at approximately US$800 million.
Kirill Klip, TNR Gold's CEO, expressed enthusiasm about the progress of the Los Azules Copper Project and its alignment with the green energy revolution.
"We are pleased that significant developments on the advancement of the Los Azules Copper Project towards feasibility have led to the increased Stellantis holdings in McEwen Copper, as a strategic partner in the future development of this giant copper, gold and silver project,” Klip said in a statement.
The venture will contribute to the clean energy transition and electrification of transportation and energy industries by supplying critical metals like copper. Los Azules, recognized as one of the largest undeveloped copper deposits globally, presents the potential for a robust leach project with reduced environmental impact and exceptional environmental and social stewardship.
The development of Los Azules is rapidly advancing, with McEwen Copper and Nuton exploring innovative technologies to enhance environmental performance and save energy, water, time, and capital. The involvement of industry leaders like Rio Tinto with its pioneering technology is expected to accelerate the realization of the project's enormous potential.
TNR Gold holds a 0.4% net smelter returns royalty (NSR Royalty) on the Los Azules copper project, adding significant value to its shareholders without the requirement of contributing capital for the project's development. The company's business model revolves around partnering with industry leaders to maximize value and generate royalty cashflows.
"TNR Gold's vision is aligned with the leaders of innovation among automakers like Stellantis, whose aim is decarbonizing mobility, and mining industry leaders like Rob McEwen's vision 'to build a mine for the future', based on regenerative principles that can achieve net zero carbon emissions by 2038,” Klip added.
The company's business model revolves around partnering with industry leaders to maximize value and generate royalty cashflows.