TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF), a green energy metals royalty and gold company said McEwen Copper Inc, has closed the first tranche of its previously announced private placement for gross proceeds to McEwen Copper of $40,000,000.
According to TNR, billionaire Rob McEwen's investment corporation, Evanachan Limited, purchased all the shares issued in the first tranche of the private placement.
McEwen Copper, which is 81% owned by McEwen Mining Inc (NYSE:MUX), is focused on advancing work at the Los Azules project.
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"TNR Gold holds a 0.36% NSR (net smelter) royalty on the entire Los Azules project containing copper, gold and silver metals. TNR Gold does not have to contribute any capital for the development of the Los Azules Copper project,” Kirill Klip, TNR's Executive Chair said in the statement.
Klip went on to say: “The essence of our business model is to have industry leaders like McEwen Mining as operators on the projects that will potentially generate royalty cash flows to contribute significant value for our shareholders."
According to the McEwen Copper announcement, preparations are underway for a large 53,000-meter drilling program in hopes of upgrading the inferred mineral resources to the indicated category.
“The first two drill rigs are arriving in early November 2021, ramping up to the full complement of 10 drills by January 2022. Access to the project is currently being established on the existing exploration road, which has been safely cleared by crews 48 miles (78 km) of the route, approximately three quarters of the way to the project,” said the statement.
Currently, construction of a new all-season lower altitude access road is underway, with completion expected during the second half of 2022.
"I am very pleased to see this very exciting and significant development for the Los Azules Copper project and personal support by Rob McEwen of the newly created McEwen Copper," said Klip.
He continued: "It's very encouraging to see a large 53,000-metre drilling program following the personal commitment from Rob McEwen and his investment of US$40 million to advance the rapid development of this giant copper, gold and silver deposit in an appropriate corporate structure which will allow financing and further development of the Los Azules Copper project."
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