Stellantis and Rio Tinto up investments in McEwen Copper
Automotive giant Stellantis and diversified miner Rio Tinto are increasing their investments in McEwen Mining’s subsidiary that is developing the Los Azules copper project in Argentina.
Stellantis has invested another 42-billion Argentine pesos in McEwen Copper, acquiring a private placement 1.9-million common shares. The proceeds of the private placement will be used to advance development of the Los Azules project.
Stellantis, which owns brands such as Alfa Romeo, Chrysler, Citroën and Dodge, in February invested 30-billion Argentine pesos in McEwen Copper.
Further, Nuton will invest another $10-million in McEwen Copper. The Rio Tinto venture will up its interest in a two-part transaction consisting of a private placement of 152 615 common shares and the purchase of 232 000 common shares owned by McEwen Mining in a secondary sale.
The transaction is expected to close by October 19.
Proceeds of the subscription and purchase are expected to be about $4-million to McEwen Copper and $6-million to McEwen Mining, respectively.
After closing the Nuton investment, McEwen Copper will have 30 937 615 common shares outstanding, and its shareholders are McEwen Mining 47.7%, Stellantis 19.4%, Nuton 14.5%, Rob McEwen 12.9%, Victor Smorgon Group 3.2%, and other shareholders 2.3%.
The transaction values McEwen Copper at approximately $800-million.
Los Azules’ current copper resources are estimated at 10.9-billion pounds at a grade of 0.40% copper (indicated category) and an additional 26.7 billion pounds at a grade of 0.31% copper (inferred category).
A PEA published in June 2023 estimated a $2.7-billion after-tax net present value at $3.75/lb copper and a 27-year mine life.
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