McEwen Inc. has closed a US$240 million senior secured four-year term loan facility through its subsidiary, McEwen Copper, to fund engineering and early works at the Los Azules copper project in San Juan, Argentina.

The financing carries an interest rate of 12.0% per annum, payable monthly, with the principal due at maturity. Participants in the syndicate include Sprott Natural Resource Investment Partners contributing $112 million, McEwen Chairman and Chief Owner Rob McEwen providing $85 million, and other lenders supplying $43 million. As part of the arrangement, lenders received 15,000 common share purchase warrants in McEwen Copper for each $1 million of principal, carrying a five-year term and an exercise price of $40 per share.

The funds will support ongoing pre-development activities while McEwen Copper assembles a broader debt financing package for the project. The subsidiary has already appointed Societe Generale as sole financial advisor for project debt structuring, alongside parallel preparations for a potential initial public offering.

Los Azules is held through McEwen Copper, in which McEwen Inc. retains a 46.3% interest alongside strategic investments from partners including Stellantis and Nuton, a Rio Tinto Venture. The project has previously secured Environmental Impact Declaration approval and approval under Argentina's Large Investment Incentive Regime.

Engineering activities at the site are proceeding ahead of schedule. Metso has been awarded the engineering contracts for key process equipment packages, encompassing solvent extraction and electrowinning, sulfuric acid, and crushing operations. Selection of an engineering, procurement, construction, and management contractor is anticipated by the fourth quarter of 2026.

“This financing reflects our lenders’ confidence in Los Azules and in the progress Argentina has made over the past two and a half years. The initiatives of President Javier Milei have helped make Argentina an increasingly attractive destination for large-scale foreign investment. Economic stabilization, stronger credit ratings, lower country risk and the RIGI are bringing long-term capital back to the country. San Juan continues to demonstrate the qualities of a dependable mining jurisdiction, supported by strong institutions, rigorous processes and sound governance. We are proud to be building Los Azules here”

— Michael Meding, Managing Director of McEwen Copper

McEwen Copper expects a final investment decision and full project financing for the Los Azules project in mid-2027, with commercial copper cathode production targeted for 2030, subject to project financing and customary regulatory approvals.

Read the full announcement: McEwen Copper Completes US$240 Million Term Loan to Advance Los Azules Toward Final Investment Decision