McEwen Copper makes share offer of $96M to advance Los Azules

McEwen Copper, a wholly owned subsidiary of McEwen Mining (TSX: MUX; NYSE: MUX), is making a $96-million (US$70 million) private placement. Proceeds will be used to advance McEwen’s Los Azules copper project in San Juan province of Argentina.

Common shares are being offered at $41 (US$30) per share. McEwen mining has agreed to purchase 466,667 shares for $19 each, and company chair and chief owner Rob McEwen will purchase 166,666 shares for $6.8 million. The remaining 1.7 million shares are available to qualified investors subject to a $2.7 million (US$2 million) commitment.

The 100%-owned Los Azules property is located 80 km west-northwest of the town of Calingasta and 6 km east of the border with Chile at an elevation of 3,500 metres in the Andes Mountains. Current copper resources are 10.9 billion lb. in ore that grades 0.40% copper in the indicated category and 26.7 billion lb. in material averaging 0.31% copper in the inferred category.

These numbers come from the preliminary economic assessment of June 2023. It estimated a $3.7 billion (US$2.7 billion) after-tax net present value with an 8% discount at a copper price of $3.75/lb. The mine would have a 27-year life. Total production is anticipated to be 322 million lb. of copper in cathodes.

McEwen is currently working on a bankable feasibility study for Los Azules, and it is due by the end of the first quarter 2025. The project will be a heap leach operation, with no tailings, to be powered by 100% renewable energy. It is expected to reach carbon neutrality by 2038.

More information is posted on www.McEwenMining.com.