The Canadian mining company McEwen Copper has announced that its copper-specialized subsidiary, in which it holds 47.3% of the capital, has signed a four-year credit line for 240 million dollars (207.2 million euros) intended to finance its initiative in Argentina at "Los Azules".
According to the information released in a press release, the raised funds will be directed to the initial stages of engineering and the first construction works of the operation located in the province of San Juan, in addition to covering general corporate needs of McEwen.
The financing comes from Sprott Natural Resource Investment Partners, which has contributed 112 million dollars (96.7 million euros); from the president and largest shareholder of McEwen, Rob McEwen, with 85 million dollars (73.4 million euros); and from a group of additional investors, who have contributed 43 million dollars (37.1 million euros).
The principal of the loan will generate an annual interest of 12%, with monthly payments over four years and full repayment of the capital at maturity. However, the loan may be prepaid, in whole or in part, by repaying the outstanding amount and accrued interest, along with a fee equivalent to 5% of the remaining capital.
As part of the financial package, the lenders have also received 15,000 "warrants" for the purchase of common shares of McEwen Copper for five years for each million dollars (863,200 euros) granted, with an exercise price set at 40 dollars (34.53 euros) per share.
The company estimates that the final investment decision and the closing of all required financing will be reached by mid-2027, while the start of copper cathode production is set for 2030, contingent on obtaining the necessary financial resources and regulatory approvals.
"This financing reflects our lenders' confidence in 'Los Azules' and in the progress that Argentina has made in the last two and a half years," said McEwen Copper's managing director, Michael Meding, who praised Javier Milei's economic policy.
As detailed by the American company on its website, "Los Azules" has proven and probable reserves of 5.4 billion pounds of copper, 26.6 million ounces of silver, and one million ounces of gold.