TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) shared news of a significant new financing that McEwen Mining Inc (TSX:MUX, NYSE:MUX) received for the Los Azules copper, gold, and silver project in San Juan, Argentina.
TNR Gold holds a 0.4% net smelter returns royalty on the Los Azules project, contributing to its continued development and growth.
McEwen Mining, the operator of the project, has entered into a binding agreement with Nuton LLC, a Rio Tinto Venture, and an existing shareholder of McEwen Copper Inc, who will invest $10 million to acquire shares of McEwen Copper.
According to a release from McEwen Mining, the investment will be divided into a two-part transaction set to conclude by October 19. It involves a private placement of 152,615 McEwen Copper common shares and the acquisition of 232,000 common shares owned by McEwen Mining in a secondary sale.
Proceeds from this investment will be allocated to advancing the Los Azules copper project, one of the top 10 largest undeveloped copper deposits in the world according to Mining Intelligence.
Following the transaction, Nuton will have a 14.5% ownership stake in McEwen Copper on a fully diluted basis, while McEwen Mining will retain a 47.7% ownership stake. The transaction places McEwen Copper's valuation at approximately US$800 million.
Nuton, an innovative venture focused on growing Rio Tinto's copper business, brings to the table a portfolio of proprietary copper leach-related technologies and capabilities developed over almost 30 years.
Kirill Klip, TNR's CEO, expressed enthusiasm regarding the financing in a separate statement. "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 February 2023 Stellantis invested ARS (Argentinean pesos) 30 billion, and with this additional investment of ARS 42 billion, has a total investment of ARS 72 billion. An investment of US $10 million in McEwen Copper was also invested by Rio Tinto's Venture Nuton after its initial US $25 million investments in 2022 and US $30 million in 2023.
"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 involvement of Rio Tinto with its innovative technology, may also accelerate realizing the enormous potential of the Los Azules project.”