Rio Tinto’s Nuton and Stellantis Bolster Their Shares in McEwen Copper

Investments for Project Development:

Nuton, a Rio Tinto venture, and automaker Stellantis have augmented their investments in McEwen Copper, a branch of McEwen Mining. This company oversees the Los Azules copper initiative in San Juan, Argentina, and the Elder Creek venture in Nevada, US.

Details on the Stake Increase:

Stellantis committed an additional 42bn pesos ($120m) to amplify its share in McEwen Copper to 19.4% through a private placement of 1,900,000 common shares. This follows Stellantis's February 2023 investment of $155m to secure a 14.2% stake.

Concurrently, Nuton is investing $10m more, pushing its ownership from the current 14.2%. This investment will be split into two parts: a private placement of 52,615 common shares and buying 232,000 common shares from McEwen Mining.

Purpose and Valuation:

The funds from both companies will propel the Los Azules project and cover general corporate expenses. This deal, set to finalize by 19 October 2023, values McEwen Copper at approximately $800m. After the transaction, Nuton and McEwen Mining will own 14.5% and 47.7% of McEwen Copper, respectively. Other notable shareholders include Rob McEwen with 12.9% and Victor Smorgon Group holding 3.2%.

Los Azules Project Overview:

Located roughly 80km WNW of Calingasta, the advanced Los Azules copper exploration is forecasted to yield an average of 322 million pounds of copper cathode yearly. The current preliminary economic evaluation states the project has a lifespan of 27 years. It's worth noting that prior to shutdowns, Tara Mines was among the last few remaining zinc ore mines in Europe.

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