TNR Gold executive chairman Kirill Klip joined Steve Darling from Proactive to discuss recent updates from McEwen Mining regarding the Los Azules copper, gold and silver project in San Juan, Argentina, on which TNR holds a 0.4% net smelter returns royalty.
Proactive: Welcome back to our Proactive newsroom. Joining me now is Kirill Klip, executive chairman of TNR Gold. Kirill, it’s good to see you again. How are you?
Kirill Klip: Very nice to see you again, Steve. We are very well. Thank you for having us today.
Proactive: Great to have you. Lots to cover today. The company recently announced more funding for the Los Azules copper, gold and silver project. Could you tell us more about that?
Kirill Klip: Yes, this is a major milestone for Los Azules. Rio Tinto is investing $35 million in McEwen Mining through its venture arm, Newton, which further supports our project. At TNR Gold, we focus on building a green energy metals royalty and gold company, and we hold an NSR royalty on the entire Los Azules copper project.
Rio Tinto has now invested $100 million in total, with strong support from McEwen Copper shareholders, even though McEwen is still private. For example, Stellantis, a major European automaker, has invested $275 million overall. Rob McEwen himself invested $5 million in this round, bringing his total investment to $40 million, alongside McEwen Mining, which contributed another $14 million.
Proactive: That’s a positive sign for the project. I understand there was also a recent discovery?
Kirill Klip: Yes, a large new porphyry system has been discovered three kilometres east of the Los Azules core. This discovery might explain Rio Tinto’s growing interest. We’ve confirmed the geological model, and the deposit remains open at depth to the north. With this new porphyry system, there’s potential for even more resources. We expect a feasibility study early next year, which should also update the resource estimate.
Proactive: With all the work and investment, this must impact your royalty's valuation.
Kirill Klip: Yes, absolutely. The new economic environment in Argentina also plays a role, with the current president implementing pro-business reforms. Based on Rob McEwen’s estimates, his royalty on Los Azules could be valued up to $100 million, implying TNR’s position might reach $30 million. The project currently estimates 11 billion pounds of copper in indicated resources and 27 billion pounds in inferred, potentially yielding 180,000 tonnes of copper annually. This could generate up to $6 million per year in royalty cash flow for TNR Gold shareholders.
We’re closely watching the progress on the feasibility study and potential IPO for McEwen Copper, expected in the first half of next year, along with the construction permit for the mine.