Stellantis ups interest in McEwen Copper to 19.4%, Rio Tinto to hold 14.5%

Stellantis, one of the world’s leading automakers and mobility providers, announced an investment of approximately $134 million (42 billion Argentine pesos) in McEwen Copper, a subsidiary of McEwen Mining (TSX:MUX, NYSE:MUX). Earlier this year, Stellantis invested approximately $116 million in McEwen Copper. When the second purchase closes, Stellantis will hold a 19.4% interest in McEwen Copper.

At the same time, McEwen announced an investment of $10 million from Nuton LLC, a subsidiary of Rio Tinto (ASX:RIO; NYSE:RTP; LSE:RIO). Proceeds of the subscription will be split between McEwen Copper ($4 million) and McEwen Mining ($6 million). After closing, Nuton will own 14.5% of McEwen Copper.

McEwen is issuing 1.9 million common shares of McEwen Copper to Stellantis, 152,615 common shares of McEwen Copper to Nuton, and a further 232,000 common shares of McEwen Mining to Nuton. McEwen Mining will continue to control 47.7% of McEwen Copper. These placements value McEwen Copper at about $1.09 billion (US$ 800 million).

McEwen Copper holds a 100% interest in the Los Azules copper project in San Juan, Argentina, and the Elder Creek gold project in Nevada.

Los Azules is one of the top 10 largest undeveloped copper deposits in the world. Its current copper resources are estimated at 10.9 billion lb. in material grading 0.40% copper (indicated category) and an additional 26.7 billion lb. in material grading 0.31% copper (inferred category). The preliminary economic assessment published in June 2023 estimated a $2.7 billion after-tax net present value (8% discount) at US$3.75/lb. copper and a 27-year mine life.

Details of the PEA are available on www.McEwenMining.com.