Name of the project
Los Azules copper project.

Location
San Juan province, Argentina.

Project Owner/s
McEwen Mining 46.4%, Stellantis 18.3%, Nuton 17.2%, Rob McEwen 12.7%, Victor Smorgon Group 3% and other shareholders 2%.

Project Description
The large, high-grade openpit copper project has significant growth potential.

According to the  updated preliminary economic assessment (PEA), completed in 2023, Los Azules is expected to produce an average of 322-million pounds of copper cathode a year over a 27-year life-of-mine.

The 2023 PEA financial model does not include potential future development phases focused on primary copper mineralisation found beneath the supergene copper.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an estimated 8% discount rate, of $2.66-billion and an internal rate of return of 21.2%, with a payback of 3.2 years.

Capital Expenditure
Initial capital expenditure is estimated at $2.46-billion in the base case.

Planned Start/End Date
Not stated.

Latest Developments
Nuton, a copper technology venture of Rio Tinto, has pumped $35-million into McEwen Copper.

McEwen previously announced a nonbrokered private placement financing of up to 2.34-million shares at $30 a share for up to $70-million. The first tranche was led by a $14-million investment by TSX-listed McEwen Mining and a $5-million investment by Rob McEwen.

In this second tranche of the offering, Nuton has acquired an additional 1.17-million common shares of McEwen Copper for $35-million. Two other investors have acquired 66 669 common shares for $2-million.

Following the closing of the second tranche, McEwen Copper has raised $56-million.

Nuton now owns 17.2% of McEwen Copper on a fully diluted basis. Following these share issuances, McEwen Copper will have 32.8-million shares outstanding, giving it an after-money market value of $984-million.

Proceeds from the offering will be used to advance ongoing work on the feasibility study, scheduled for publication in the first half of 2025. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
McEwen Mining +1 647 258 0395 or email info@mcewenmining.com.