This summer is really getting very hot for all our projects despite the winter season in Argentina, as we have discussed in our latest Video update! We are building The Green Energy Metals Royalty and Gold Company and public news is pouring in with the new level of developments on all fronts for all Green Energy Metals and Gold in our very strong portfolio of assets.
Today we extend our congratulations to Ganfeng Lithium and all their Team! Judging by the treatment of Ganfeng Lithium's plans for Mariana Lithium and granted "green light to go" in the record time, the Government of Argentina is ready to address this new chapter for its economy in the most productive, practical and efficient way in order to attract investments and the best companies to build these new industries for the 21st century. Please make no mistake here, we are talking about the future for all proud people of Argentina. This beautiful country can become the Power House for the Energy rEVolution.
Things are finally heating up with all our holdings in Gold, Copper Silver and Lithium to the proper melting point when the true value of our assets will start to shine brightly. Now even ruthless and brutal Mr Market will not be able to ignore it anymore.
And now, Ganfeng is picking up this electric race with their great news delivered by Reuters via NASDAQ that Mariana Lithium Project gets the green light for 20,000 tonnes per year Lithium plant for Mariana Lithium Project in Argentina! You can find more info about Ganfeng Lithium plans to invest US$600 million dollars in the development of the Mariana Lithium Project for your own research on the links below. TNR Gold is holding NSR Royalty on the entire Mariana Lithium Project.
NASDAQ:
China's Ganfeng gets green light for Argentina lithium plant
"July 6 (Reuters) - China's Ganfeng Lithium 002460.SZ, 1772.HK on Tuesday said its subsidiary had received approval to build a 20,000 tonnes per year lithium plant for its Mariana project in northern Argentina, where it intends to use solar power.
Ganfeng, one of the world's top producers of lithium chemicals for electric-vehicle batteries, said its unit Litio Minera Argentina "recently obtained an Environmental Impact Report approval for the construction of a plant for the Mariana lithium salt lake project from Salta Province".
The document approved a plant with capacity to produce 20,000 tonnes of lithium chloride annually.
Lithium chloride, produced at lithium brine projects, can be used to make battery-grade lithium carbonate or lithium metal.
Ganfeng, which said last month it would use a 120-megawatt photovoltaic system to power the plant, had previously noted lithium at Mariana could be extracted through solar evaporation, reducing emissions and costs.
Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions.
"Another great news for the proud people of Argentina and TNR Gold shareholders is that Reuters reports that now Ganfeng Lithium is planning 20,000 T of annual LCE production capacity. It will be a 100% increase from the 10,000 T of annual production capacity estimated in the Mariana Lithium PEA which was prepared and released in 2018 before more than 250% increase in measured and indicated Lithium resources from the 2017 resource estimate was reported by Ganfeng Lithium and TNR Gold in 2020."
TNR has exposure to three sizeable projects, two in Argentina and one in Alaska
It’s a back-of-the-envelope number, but TNR Gold Corp (CVE:TNR) could now just be a stone’s throw away from a recurring US$5mln per year revenue stream from its 1.8% royalty on the Mariana lithium project in Argentina.
It’s been more than 12 years since the TNR team originally discovered Mariana, and development since then has sometimes seemed painfully slow. In the intervening period between then and now TNR managed to further develop a highly attractive gold project in Alaska that often hogs the limelight as far as newsflow and investor sentiment are concerned.
But Mariana retains significant value for the company too, particularly so since the project is so large.
Since China’s largest lithium company, Ganfeng Lithium, got involved some years ago the size of the lithium resource has increased by more than 250%, the amount of lithium the project is slated to produce annually has doubled, and the lithium price has bounced from multi-year lows.
In this context, it wasn’t too surprising that Ganfeng announced in the latter part of June that it was willing to put up nearly US$600mln to develop Mariana, and that ideally construction should start before the end of this year.
The news was welcomed by the governor of Argentina’s Salta province, particularly so as the proposal involves sourcing all power for the project from solar energy.
The implications for the region are significant in terms of employment and wider economic uplift, and they’re significant for TNR too.
Hard financial numbers are difficult to come by as yet, as an official feasibility study is still in the pipeline, and the parameters of the project have changed so much to the upside since the original preliminary economic assessment was done in 2018.
But on the basis of a smaller resource, a lower lithium price, and a lower output rate, one analyst reckoned a year or two ago that the annual revenue due to TNR would be upwards of US$1mln. No question that that number is much higher now, and pegging it at US$5mln, though aggressive, doesn’t seem outlandish.
Kirill Klip, the chief executive of TNR, is certainly under no illusion about the significance of the Ganfeng commitment to Mariana.
“This is basically the best news for us since we got involved,” he says.
“The project has been 12 years in development and now suddenly the switch is going to switch on.”
The transformation to TNR will be significant. The company is currently capitalised at under C$8mln on the Venture Exchange, despite the huge potential upside at the Shotgun Gold project in Alaska and at the Los Azules copper project, also in Argentina, where McEwen Mining (TSE:MUX) is taking the lead. All told, Argentina is definitely heating up for TNR Gold this year, as Bloomberg reported significant developments at Los Azules only this week.
At Shotgun, meanwhile, Klip has been hanging fire on initiating a major drill programme because to his mind the upside is so significant that only a major campaign would do it justice - and that, of course would be expensive.
But with US$5mln in potential future annual revenues coming in from Mariana, the picture is transformed. For one thing, TNR will be able to front up for significant drilling costs off its own bat, without having to go to the market or seek a partner. But if it does end up seeking a partner, the pressure to sign on the dotted line will be greatly reduced.
The Mariana royalty, in short, represents TNR’s route to independence, especially since no contribution at all is required to get Mariana going.
“The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders,” emphasises Klip.
"I believe, that our NSR Royalty on Mariana Lithium is a company building asset. We are building the green energy metals and gold company. TNR Gold holds NSR royalties on projects containing copper, gold, silver and lithium metals. TNR Gold does not have to contribute any capital for the development of the Los Azules copper project and Mariana lithium project. The essence of our business model is to have industry leaders like McEwen Mining and Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions.
We extend our congratulations to Rob McEwen and all his Team! It is a long journey, but giant mining deposits like Los Azules Copper, Gold and Silver Project deserve the best treatment. You must be ready and have the timing right to earn respect from ruthless and brutal Mr Market.
Now Rob McEwen is doing exactly what is required for Los Azules. He is putting the best structure, his personal support and a very nice corporate governance treatment to this GEM to make the best diamond which will shine very bright on its way of building Argentina into the Power House of Energy rEVolution. The proud people of Argentina are ready to build this new chapter for their beautiful country.
Today, Mr Goldcorp. Rob McEwen is moving the giant Los Azules Copper, Gold and Silver project on the fast lane of development to feed Energy rEVolution. TNR Gold is plugged into this electric future with our NSR Royalty Holding on the entire Los Azules Project:
"This is a significant and exciting moment for McEwen Mining because of the value it should release. Currently, the market appears to be giving us little value for our Los Azules copper deposit, despite its impressive size and robust economics at present copper prices. Unfortunately, the scale of the required project development expenditures would require McEwen Mining to issue a massive number of additional shares. This share dilution would not be acceptable. However, we believe that by putting our copper assets, Los Azules and Elder Creek, into a separately listed company exclusively focused on copper, we can create an attractive copper investment vehicle. It will allow us to raise the money necessary to fund progress towards the rapid development of one of the world's largest copper resources. We expect that McEwen Copper will compare very favorably to other single-asset copper developers. Within 12 months of closing this Offering we plan to take the company public. In the interim, we will be investigating ways to make a share distribution to you, MUX shareowners, of a portion of McEwen Mining’s holdings of McEwen Copper in a tax-efficient way," stated Rob McEwen, Chairman and Chief Owner.
Bloomberg reports another great news for TNR Gold shareholders, Rob McEwen and the proud people of Argentina!
Things are finally heating up with all our holdings in Gold, Copper Silver and Lithium to the proper melting point when the true value of our assets will start to shine brightly and even ruthless and brutal Mr Market will not be able to ignore it anymore.
This summer is going to be very hot for all our projects, as we have discussed in our latest Video update. We are building The Green Energy Metals Royalty and Gold Company and public news is pouring in with the new level of developments on all fronts for all Green Energy Metals and Gold in our very strong portfolio of assets.
After the great news by Reuters for TNR Gold about Ganfeng Lithium's plans to invest US$600 in Mariana Lithium and their plans now to double PEA (2018) estimated annual production from 10,000 to 20,000 T of Lithium LCE, we have our Copper Royalty Holding on the giant Los Azules shining very bright today. Now our NSR Royalty Holding on the giant Los Azules Project with Copper, Gold and Silver is getting into the headlines with Mr Goldcorp himself - Rob McEwen is presenting the Story:
There can be only one deal be done for Los Azules, not ten. We all need just one deal, but the best one, which will be the best for all shareholders. Rob McEwen is navigating carefully the boardrooms of major mining companies with his Los Azules Copper Project Slide Deck while enjoying the beautiful landscape of the San Juan province in Argentina and inviting industry majors to come, join and enjoy the scenery together:
"Rob is talking exactly about this approach which we are using for our Gold in Alaskaas well now. Rob McEwen: "... the two strategic alternatives are being aggressively evaluated to determine what we believe will be the optimal way to finance the rapid development of Los Azules to create the greatest long-term value from this large copper resource for Argentina, the nearby communities, our shareholders, and employees."
Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions.
Do Your Own Research.
McEwen Mining:
MUX Creates McEwen Copper Which Announces $80 Million Series B Private Placement to Advance the Los Azules Copper Project
TORONTO, July 06, 2021 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE and TSX: MUX) announces a non-brokered private placement financing of up to 8,000,000 common shares of its wholly-owned subsidiary McEwen Copper Inc. at a subscription price of US$10.00 per common share, for gross proceeds of up to US$80 million (the "Offering"). McEwen Copper currently has 17,500,000 common shares outstanding.
A lead order to purchase 50% of the Offering has been committed by Rob McEwen, Chairman and Chief Owner of McEwen Mining. His investment corporation, Evanachan Limited, will purchase 4,000,000 common shares of McEwen Copper for US$40 million and is prepared to close on this portion of the Offering immediately.
Subscription for the remaining 4,000,000 common shares is available to qualified accredited investors, subject to a US$2 million minimum investment and certain other conditions. The securities sold in the Offering are private and subject to transfer restrictions until such time they become listed on a public exchange.
Pursuant to this transaction, McEwen Copper will hold a 100% interest in the Los Azules copper project in San Juan, Argentina, and a 100% interest in the Elder Creek exploration property in Nevada, subject to a 1.25% net smelter return (NSR) royalty on both assets payable to McEwen Mining.
Assuming completion of the full amount of the Offering, McEwen Mining will be the controlling shareholder and own 68.6% of McEwen Copper. The new investors, including Rob McEwen, will own 31.4%.
McEwen Copper intends to pursue an initial public listing within 12 months from the closing of this Offering. Proceeds from the Offering will be used exclusively by McEwen Copper to advance the Los Azules project to a pre-feasibility study, construction of a new year-round access road to the project, exploration drilling at Los Azules and Elder Creek, environmental permitting and community relations, and general corporate purposes.
"This is a significant and exciting moment for McEwen Mining because of the value it should release. Currently, the market appears to be giving us little value for our Los Azules copper deposit, despite its impressive size and robust economics at present copper prices. Unfortunately, the scale of the required project development expenditures would require McEwen Mining to issue a massive number of additional shares. This share dilution would not be acceptable. However, we believe that by putting our copper assets, Los Azules and Elder Creek, into a separately listed company exclusively focused on copper, we can create an attractive copper investment vehicle. It will allow us to raise the money necessary to fund progress towards the rapid development of one of the world's largest copper resources. We expect that McEwen Copper will compare very favorably to other single-asset copper developers. Within 12 months of closing this Offering we plan to take the company public. In the interim, we will be investigating ways to make a share distribution to you, MUX shareowners, of a portion of McEwen Mining’s holdings of McEwen Copper in a tax-efficient way," stated Rob McEwen, Chairman and Chief Owner.
The proposed Offering was reviewed and approved by the disinterested members of the board of McEwen Mining. McEwen Mining will retain management direction over McEwen Copper and has engaged consultants with significant expertise and experience developing and operating copper mines in South America.
Los Azules is an advanced large-scale porphyry copper exploration project located in the prolific Andean Cordillera copper belt, 56 miles (90 km) north of Glencore’s El Pachón project and near the border with Chile. In 2017, McEwen Mining completed a positive Preliminary Economic Assessment (PEA) on the project, which is available at www.mcewenmining.com/operations/los-azules. Elder Creek is an early-stage copper-gold porphyry exploration project located in Northern Nevada 6 miles (9 km) from SSR Mining’s Marigold Mine Complex.
The Offering is expected to close by July 30, 2021.
This news release and the information included herein do not constitute an offer to buy or the solicitation of an offer to subscribe for or to buy any of the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
CAUTION STATEMENT CONCERNING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the private securities litigation reform act of 1995. The forward-looking statements are intended to be subject to the safe harbor provided by section 27a of the securities act of 1933, section 21e of the securities exchange act of 1934 and private securities litigation reform act of 1995.
This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this news release, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, effects of the COVID-19 pandemic, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the corporation to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves, and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.
The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management of McEwen Mining Inc.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina.
"Another great news for the proud people of Argentina and TNR Gold shareholders is that Reuters reports that now Ganfeng Lithium is planning 20,000 T of annual LCE production capacity. It will be a 100% increase from the 10,000 T of annual production capacity estimated in the Mariana Lithium PEA which was prepared and released in 2018 before more than 250% increase in measured and indicated Lithium resources from the 2017 resource estimate was reported by Ganfeng Lithium and TNR Gold in 2020."
TNR has exposure to three sizeable projects, two in Argentina and one in Alaska
It’s a back-of-the-envelope number, but TNR Gold Corp (CVE:TNR) could now just be a stone’s throw away from a recurring US$5mln per year revenue stream from its 1.8% royalty on the Mariana lithium project in Argentina.
It’s been more than 12 years since the TNR team originally discovered Mariana, and development since then has sometimes seemed painfully slow. In the intervening period between then and now TNR managed to further develop a highly attractive gold project in Alaska that often hogs the limelight as far as newsflow and investor sentiment are concerned.
But Mariana retains significant value for the company too, particularly so since the project is so large.
Since China’s largest lithium company, Ganfeng Lithium, got involved some years ago the size of the lithium resource has increased by more than 250%, the amount of lithium the project is slated to produce annually has doubled, and the lithium price has bounced from multi-year lows.
In this context, it wasn’t too surprising that Ganfeng announced in the latter part of June that it was willing to put up nearly US$600mln to develop Mariana, and that ideally construction should start before the end of this year.
The news was welcomed by the governor of Argentina’s Salta province, particularly so as the proposal involves sourcing all power for the project from solar energy.
The implications for the region are significant in terms of employment and wider economic uplift, and they’re significant for TNR too.
Hard financial numbers are difficult to come by as yet, as an official feasibility study is still in the pipeline, and the parameters of the project have changed so much to the upside since the original preliminary economic assessment was done in 2018.
But on the basis of a smaller resource, a lower lithium price, and a lower output rate, one analyst reckoned a year or two ago that the annual revenue due to TNR would be upwards of US$1mln. No question that that number is much higher now, and pegging it at US$5mln, though aggressive, doesn’t seem outlandish.
Kirill Klip, the chief executive of TNR, is certainly under no illusion about the significance of the Ganfeng commitment to Mariana.
“This is basically the best news for us since we got involved,” he says.
“The project has been 12 years in development and now suddenly the switch is going to switch on.”
The transformation to TNR will be significant. The company is currently capitalised at under C$8mln on the Venture Exchange, despite the huge potential upside at the Shotgun Gold project in Alaska and at the Los Azules copper project, also in Argentina, where McEwen Mining (TSE:MUX) is taking the lead. All told, Argentina is definitely heating up for TNR Gold this year, as Bloomberg reported significant developments at Los Azules only this week.
At Shotgun, meanwhile, Klip has been hanging fire on initiating a major drill programme because to his mind the upside is so significant that only a major campaign would do it justice - and that, of course would be expensive.
But with US$5mln in potential future annual revenues coming in from Mariana, the picture is transformed. For one thing, TNR will be able to front up for significant drilling costs off its own bat, without having to go to the market or seek a partner. But if it does end up seeking a partner, the pressure to sign on the dotted line will be greatly reduced.
The Mariana royalty, in short, represents TNR’s route to independence, especially since no contribution at all is required to get Mariana going.
“The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders,” emphasises Klip.
"I believe, that our NSR Royalty on Mariana Lithium is a company building asset. We are building the green energy metals and gold company. TNR Gold holds NSR royalties on projects containing copper, gold, silver and lithium metals. TNR Gold does not have to contribute any capital for the development of the Los Azules copper project and Mariana lithium project. The essence of our business model is to have industry leaders like McEwen Mining and Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions.
