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

The funding package carries a 12.0% annual interest rate payable monthly and includes participation from Sprott Natural Resource Investment Partners, which contributed $112 million, and chairman and major owner Rob McEwen, who provided $85 million. Other lenders supplied the remaining $43 million. Lenders also received 15,000 five-year common share purchase warrants priced at $40 per share for each $1 million of principal.

The new debt facility marks a significant scale-up in financing compared with McEwen Copper’s previous US$70 million equity financing completed in June 2024. Proceeds will support site engineering and preparatory work while the company advances broader project debt financing, with Societe Generale acting as sole financial advisor. Preparations for a potential initial public offering of McEwen Copper are also continuing in parallel.

For TNR Gold Corp., which holds a 0.4% net smelter returns royalty on Los Azules, the development advances the project toward upcoming milestones without requiring any capital contribution from the company under its lead generator business model.

"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

Engineering for key process equipment packages including solvent extraction and electrowinning, sulfuric acid, and crushing has been awarded to Metso, while selection of an engineering, procurement, construction and management contractor is expected before the end of the fourth quarter of 2026.

A final investment decision and full project financing are anticipated in mid-2027, with commercial copper cathode production targeted to begin in 2030, subject to customary approvals and project financing.

Read the full announcement: TNR Gold NSR Royalty Update - McEwen Copper Completes US$240 Million Term Loan to Advance Los Azules Toward Final Investment Decision