Stellantis, one of the world’s leading automakers and mobility providers, announced an investment of approximately US$134 million ($42 billion) in McEwen Copper, a subsidiary of McEwen Mining (TSX: MUX, NYSE: MUX) Argentine peso). Earlier this year, Stellantis invested about $116 million in McEwen Copper. Upon completion of the second acquisition, Stellantis will own 19.4% of McEwen Copper.
Meanwhile, McEwen announced a $10 million investment from Rio Tinto (ASX:RIO; NYSE:RTP; LSE:RIO) unit Nuton LLC. Proceeds from the subscription will be split between McEwen Copper ($4 million) and McEwen Mining ($6 million). Upon completion of the transaction, Nuton will own 14.5% of McEwen Copper.
McEwen will issue 1.9 million shares of McEwen Copper common stock to Stellantis, 152,615 shares of McEwen Copper common stock to Nuton and an additional 232,000 shares of McEwen Mining common stock to Nuton. McEwen Mining will continue to control 47.7% of McEwen Copper. The placements value McEwen Copper at approximately $US1.09 billion ($800 million).
McEwen Copper holds 100% interests in the Los Azules copper project in San Juan, Argentina, and the Elder Creek gold project in Nevada.
Los Azules is one of the ten largest untapped copper mines in the world. Current copper resources are estimated at 10.9 billion pounds of material grading 0.40% copper (indicated category), with an additional 26.7 billion pounds of material grading 0.31% copper (inferred category). A preliminary economic assessment released in June 2023 estimated an after-tax net present value (discounted by 8%) of $2.7 billion, or $3.75 per pound. copper and a 27-year mine life.
Details of the PEA are available on www.McEwenMining.com.
