Kirill Klip: TNR Gold NSR Royalty Holding: "Los Azules is Due to Receive a Key Environmental Permit in Four to Six Weeks - McEwen Copper Seeks $2.5bn for Copper Project in Argentina"

Friday, 29 November 2024

TNR Gold NSR Royalty Holding: "Los Azules is Due to Receive a Key Environmental Permit in Four to Six Weeks - McEwen Copper Seeks $2.5bn for Copper Project in Argentina"

We have another major milestone for the TNR Gold Royalty Portfolio fast approaching. Los Azules Copper Project is due to receive a key environmental permit in four to six weeks! Rob McEwen Team has the full support of the new government in Argentina and this giant Copper, Gold and Silver Project will benefit from bold pro-economic reforms implemented by the new President Javier Milei.

Update December 3, 2024:

"McEwen Copper Secures Environmental Permit for Construction and Operation of Los Azules

TORONTO, Dec. 03, 2024 (GLOBE NEWSWIRE) -- McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to announce the approval of the Environmental Impact Assessment (EIA) for its Los Azules copper project. The Environmental Impact Statement (EIS), which is the ministerial resolution approving the EIA, is a key permitting milestone on the way to feasibility, construction and future operation."

"I like to look at some deposits converted into a Gold equivalent. This deposit is equivalent to 60 million ounces of Gold deposit. Cash costs are on the equivalent basis of just over $600/oz, and the overall cost is just over $1000/oz. It will be producing over 600,000 ounces of Gold per year. In my book, this is one of a hell Gold deposit! That's almost what the Timmins district, the most prolific Gold district in Canada has produced over the last 100 years." (Rob McEwen)

"Goldman Sachs is talking about Copper price reaching $6.8 per lb driven by the deficit in the market. "If Copper goes to $6 per lb it will put a few smiles on the faces of people around here", Rob explains. "There is a large gap between supply and demand is developing according to Goldman Sachs. And if China comes back on stream, they are the big buyer of Copper... so we could see that number. I will be very happy as Los Azules is projected to be producing copper at $1.7 per lb." (Rob McEwen)

"McEwen Copper seeks $2.5bn for Los Azules project in Argentina

Canada’s McEwen Copper is scouting for investors to raise $2.5 billion to move forward with construction of Los Azules copper mine in Argentina, company vice president Michael Meding said in an interview.

McEwen Copper, part of McEwen Mining, is among several international companies looking to extract copper in the mountains of northern Argentina, a region largely untapped for the commodity due to the country’s tough capital controls and volatile economy.

An incentive program under President Javier Milei is now spurring activity, including from major players such as miner BHP, after the country’s only copper mine closed in 2018.

Los Azules is due to receive a key environmental permit in four to six weeks, Meding said. From there, the company hopes around the end of 2025 to start planning for construction.

“We have invested more than $400 million to date. And now we are looking for $2.5 billion for capex,” Meding told Reuters on Thursday.

The project, expected to produce about 175,000 metric tons of copper a year, aims to qualify for Milei’s Incentive Regime for Large Investments, or RIGI, in about three months. The scheme offers 30 years of tax credits, lighter customs duties and a progressive easing of capital controls.

Carmaker Stellantis and Nuton, a unit of global miner Rio Tinto, both hold minority shares of Los Azules, located in San Juan province. Nuton increased its stake with an investment of $35 million in October.

Argentine state-owned company YPF Luz has agreed to provide the mine with 100% renewable energy, mainly solar, Meding said.

European Union officials recently visited the site, and Meding said he discussed with them the project’s social and environmental standards.

“We ticked many of the boxes that make it interesting for a possible European investment,” Meding said." (MINING.com By Lucila Sigal; Editing by Tomasz Janowski and David Gregorio)

With this major vote of confidence from Rio Tinto, the world's second-largest metals and mining company, we are opening a new chapter of TNR Gold's Story and our Green Energy Metals Royalty portfolio in Argentina. Ganfeng Lithium is advancing Mariana Lithium into the production phase this year and the giant Los Azules Copper project is moving towards the bankable feasibility study, obtaining the permit to build a mine and construction decision.

Last year we repaid our investment loan in full, and our Company has no debt. We believe that the recent market prices of our shares do not properly reflect the underlying value of the shares. Our transformation from the project generation junior mining company into the cash flow generating royalty company will bring the necessary catalyst for the market valuation of our assets.

"TNR Gold's 0.36% NSR Royalty could be valued at USD $30 million, based on Rob McEwen's estimations analysing the recent Osisko Gold Royalties deal with SolGold in Ecuador. In the Alastair Ford article, you can find more information about TNR Gold and benchmarks for our GEM Royalty portfolio."

We are building The Green Energy Metals Royalty and Gold Company. TNR Gold is plugged into Tesla Energy rEVolution with our Royalty Holdings on the Mariana Lithium Project with Ganfeng Lithium, Los Azules Copper, Gold and Silver Project with McEwen Mining and Batidero I and II Properties of Josemaria Copper-Gold Project with Lundin mining.

On the links below you can find all the latest information about TNR Gold's Royalty portfolio, potential valuations of TNR Gold's NSR Royalty and how Rob McEwen's plan to produce "Green Copper" for Argentina is taking shape.

TNR Gold NSR Royalty on Los Azules: Rob McEwen Presents the World's First Regenerative Green Copper Mine in Argentina

Today, we have the opportunity to listen to Rob McEwen's presentation about the world's first regenerative green Copper mine in Argentina. This giant Copper, Gold, and Silver project is attracting increasing attention in the industry and among investors. TNR Gold is holding NSR Royalty on the entire Los Azules Copper Project and our shareholders will benefit from the progress towards a feasibility study and the permit to build this mine.

"I like to look at some deposits converted into a Gold equivalent. This deposit is equivalent to 60 million ounces of Gold deposit. Cash costs are on the equivalent basis of just over $600/oz, and the overall cost is just over $1000/oz. It will be producing over 600,000 ounces of Gold per year. In my book, this is one of a hell Gold deposit! That's almost what the Timmins district, the most prolific Gold district in Canada has produced over the last 100 years." (Rob McEwen)

Rob McEwen Presents The World's First Regenerative Green Copper Mine in Argentina at Zurich 2024

TNR Gold NSR Royalty on Los Azules: "McEwen Copper Receives Additional $35m Investment from Rio Technology Venture"

We have another very significant development and a major vote of confidence for Argentina's giant Los Azules Copper, Gold and Silver deposit and TNR Gold NSR Royalty holding. McEwen Copper receives an additional USD $35 million investment from Rio Tinto's Technology Venture Nuton. This new investment brings the total Rio Tinto Investment in McEwen Copper to USD $100 million.

It is important to note, that this new additional investment is coming from Rio Tinto after the new PEA was released last year and just a few months before the bankable feasibility study will be released in Q1 2025.

"TNR Gold shareholders can learn more about the project and McEwen Copper's progress in advancing it to the feasibility study. "We are looking to take it public in the first half of the next year, once we have a bankable feasibility study in hand and the permit to build", explains Rob. "We are currently making financing with the implied valuation for Los Azules Copper of just under One Billion US Dollars".

Rob McEwen continues investing personally in McEwen Copper as well. He has provided McEwen Copper's initial investment round with USD $40 million lead offer and invested USD $5 million in this financing round. McEwen Mining has invested USD $14 million. The world's fourth largest automaker Stellantis has invested a total of USD $275 million in McEwen Copper in two previous financing rounds.

"The special features of the Los Azules project include a new architecture for mine construction and design. The project will be powered by energy from renewable sources, be carbon neutral and will feature a "people friendly" working environment boasting terraced living accommodation and food production." (ABN Newswire)

Rio Tinto's advanced technology developed by Nuton will be used to extract and produce LBMA Copper plate at Los Azules. Apparently, they like what they see at the project including the very impressive drilling results from the last season.

"Exploration over our property has produced an intriguing target, late in the season. Initial results of a concession-wide regional mapping and sampling campaign have identified strong evidence of a large porphyry system 3 kilometers east of the Los Azules deposit. Porphyry-style veining and quartz vein stockworks with copper oxide mineralization have been recognized within this new target, with assay results pending."

In my personal opinion, after this new investment, Rio Tinto is opening the door to taking a more proactive approach to the development of Los Azules. This giant company has everything that is needed to put Los Azules into production: technology, capital and an appetite for M&A, demonstrated in the last deal in the Lithium sector.

The bold pro-business reforms in Argentina were advanced by the new President Javier Milei and will support the development and positively affect the Los Azules Project's economics. Argentina now has everything to become the Powerhouse of Tesla Energy rEVolution.

With this major vote of confidence from Rio Tinto, the world's second-largest metals and mining company, we are opening a new chapter of TNR Gold's Story and our Green Energy Metals Royalty portfolio in Argentina. Ganfeng Lithium is advancing Mariana Lithium into the production phase this year and the giant Los Azules Copper project is moving towards the bankable feasibility study, obtaining the permit to build a mine and construction decision.

McEwen Copper receives additional $35m investment from Rio technology venture

"McEwen Mining (NYSE: MUX) (TSX: MUX) said on Thursday that its McEwen Copper unit has secured an additional $35 million investment from Nuton, a leaching technology venture created by Rio Tinto, to support the feasibility study for its Los Azules copper project in San Juan, Argentina.

In June, McEwen Copper announced a private placement financing of up to $70 million through the issuance of approximately 2.33 million shares at $30 per share. Under the first tranche, the McEwen unit received a $14 million investment its parent company and a $5 million investment from Rob McEwen, its chairman and chief owner.

Nuton’s $35 million investment represents the second tranche of that financing, with the purchase of nearly 1.17 million shares. Two other investors also participated in this tranche for a total of $2 million.

Together with the first tranche, McEwen Copper has now raised a total of $56 million for the Los Azules project.
Los Azules project

Los Azules is an open-pit copper deposit located 80 km 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. The extent of mineralization along strike exceeds 4 km and the distance across strike is approximately 2.2 km.

The copper resource contains 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. This resource is expected to support average production of 322 million lb. of copper in cathodes per year over a projected 27-year life.

According to a June 2023 preliminary economic assessment, Los Azules would have an estimated after-tax net present value (at a discount rate of 8%) of $2.7 billion and internal rate of return of 21.2%, based on an assumed copper price of $3.75/lb. Its payback period is 3.2 years.

McEwen Copper is currently working a bankable feasibility study for the project, which is scheduled for publication in the first half of 2025.
Shareholding update

The copper subsidiary was created by McEwen Mining in mid-2021 with a view of maximizing the value of its copper assets. A year later, it received its first investment from Nuton, while also establishing a partnership with the Rio venture to assess the potential application of its heap leach technology at Los Azules.

According to the companies, heap leaching would offer superior economic and environmental benefits over the conventional milling methods. The project is also expected to be powered by 100% renewable energy, with a commitment to reach carbon neutrality by 2038.

Following the latest round of financing, Nuton now owns 17.2% of McEwen Copper on a fully diluted basis, nearly doubling its initial shareholding. Its other notable shareholders are: McEwen Mining (46.4%), Stellantis (18.3%), Rob McEwen (12.7%) and Victor Smorgon Group 3.0%.

With the new share issuances, McEwen Copper now has approximately 32.8 million common shares outstanding, giving it a post-money market value of $984 million." (Mining.com)

We are building The Green Energy Metals Royalty and Gold Company. TNR Gold is plugged into Tesla Energy rEVolution with our Royalty Holdings on the Mariana Lithium Project with Ganfeng Lithium, Los Azules Copper, Gold and Silver Project with McEwen Mining and Batidero I and II Properties of Josemaria Copper-Gold Project with Lundin mining.