TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) said that McEwen Copper has retained Societe Generale as sole financial advisor for project debt financing at the Los Azules copper project in Argentina, a development the royalty holder called a significant step toward construction.
TNR holds a 0.4% net smelter returns royalty on Los Azules, which is owned by McEwen Copper, a company 46.3% held by McEwen Mining Inc (TSX:MUX, NYSE:MUX).
Societe Generale will lead the structuring and arrangement of a senior debt package to fund construction, with financing expected to draw from a combination of export credit agencies, commercial banks, multilateral and development finance institutions, and potential project bond or other capital markets instruments.
The appointment builds on McEwen Copper's existing collaboration with the International Finance Corporation, a member of the World Bank Group, which is working with the company to align the project with IFC environmental, social and governance standards ahead of international project financing. The project will also be developed in alignment with the Equator Principles.
"Bringing Societe Generale on board marks a significant step in advancing Los Azules toward construction," said Michael Meding, managing director of McEwen Copper. "Societe Generale's global project finance platform and long-standing relationships with the export credit agency, multilateral and commercial banking community make them an ideal partner to help us assemble a robust, competitively priced debt package for one of the world's largest undeveloped copper projects."
Los Azules completed two foundational milestones in 2025, including approval under Argentina's Large Investment Incentive Regime, known as RIGI, which grants 30 years of legal, fiscal and customs stability, and publication of a feasibility study confirming initial five-year average production of 205,000 tonnes per annum of copper cathodes at a C1 cash cost of $1.71 per pound over a 22-year mine life. The project also carries identified upside to extend mine life by an additional 33 years.
McEwen Copper is targeting a final investment decision by the end of 2026, with construction set to begin in early 2027 and production targeted for 2030, subject to project financing and customary approvals.
TNR Gold CEO Kirill Klip said the collaboration between McEwen Copper and the IFC could move the project closer to a construction decision.
"Mining in Argentina is being recognized by the government as an integral part of its economic development plan, providing jobs and enriching local communities,” Klip said. “The president of Argentina has introduced important government policies aimed at supporting business and unlocking the country's economic potential.”
Klip noted that TNR Gold does not have to contribute any capital for Los Azules’s development.
Klip also pointed to the project's environmental ambitions, noting McEwen Copper's work with Rio Tinto's Nuton technology to reduce energy, water and capital requirements, and flagged a mine target of net zero carbon emissions by 2038. He framed Los Azules as a key source of copper for the clean energy transition and electrification of transportation.