Nuton will acquire shares of McEwen Copper in a two-part transaction that includes a private placement of 152,615 common shares and the purchase of 232,000 common shares through a secondary sale.
Proceeds from the private placement and purchase are expected to be approximately $4 million for McEwen Copper and approximately $6 million for McEwen Mining.
Proceeds from the private placement will be used to advance the development of the Los Azules copper project in San Juan, Argentina, in which McEwen Copper owns 100% interest. Proceeds will also be used for general corporate purposes.
Once the deal closes on October 19, Nuton will own 14.5% of McEwen Copper on a fully diluted basis and McEwen Mining will own 47.7%. The deal values McEwen Copper at approximately $800 million ($1.3 billion).
Earlier this year, Rio Tinto invested $30 million ($47 million) in McEwen Copper in a two-part deal that closed on March 10.
“We are very pleased with Nuton’s continued strong investment in McEwen Copper,” said Rob McEwen, CEO of McEwen Copper.
“Together we are exploring new technologies that save energy, water, time and money, delivering green copper to Argentina and around the world, a product that will help electrify transportation and protect our atmosphere.”
Additionally, in August 2022, Nuton invested US$25 million ($40 million) in McEwen Copper through a third private placement offering initially announced in July 2021.
The initial private placement includes up to 8 million common shares of McEwen Copper at a subscription price of $US10 ($16) per common share, raising total proceeds up to $US80 million ($127 million).
