TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) earlier this week highlighted significant progress in its royalty portfolio, particularly with the Los Azules copper project in Argentina.
Executive chairman Kirill Klip shared that McEwen Copper, the project's operator, secured an environmental permit for construction and operation—a key milestone in advancing the project toward a feasibility study expected in early 2024.
Klip emphasized TNR Gold's transformation into a royalty company, describing its NSR royalty on Los Azules as a pivotal asset.
He cited comparable transactions to estimate the royalty's potential valuation at $30 million, while McEwen Copper’s owner, Rob McEwen, placed his own royalty’s valuation at $100 million.
The Los Azules project has attracted substantial investments. The most recent investment round included $35 million from Rio Tinto's Nuton Technology and $14 million from McEwen Mining. Rob McEwen added $5 million to his previous $40 million investment, bringing his total commitment to $45 million. Nuton Technology's total investment now stands at $100 million, while Stellantis had previously invested $275 million in earlier rounds.
Klip noted the project's large-scale resource potential, with estimated production of 175,000 tonnes of copper annually over a 27-year mine life. He added that the feasibility study and subsequent construction decision could unlock substantial value for TNR Gold, aligning with its goal of cash flow generation.
The company told investors it is poised to benefit from this transformation, which Klip described as a "Christmas present for shareholders."