McEwen Mining Inc (MUX)

[JD400]

McEwen Copper makes share offer of $70 million to advance Los Azules
Staff Writer | June 25, 2024 | 10:55 am Exploration Markets Canada Latin America Copper

McEwen Copper, a wholly owned subsidiary of McEwen Mining (TSX: MUX; NYSE: MUX), is making a $70 million private placement. Proceeds will be used to advance McEwen’s Los Azules copper project in the San Juan province of Argentina.


Common shares are being offered at $30 per share. McEwen mining has agreed to purchase 466,667 shares for $14 million, and company chair and chief owner Rob McEwen will purchase 166,666 shares for $5 million. The remaining 1.7 million shares are available to qualified investors subject to a $2 million commitment.

The 100%-owned Los Azules property is located 80 km west-northwest of the town of Calingasta and 6 km east of the border with Chile at an elevation of 3,500 metres in the Andes Mountains.

Current copper resources are 10.9 billion lb. in ore that grades 0.40% copper in the indicated category and 26.7 billion lb. in material averaging 0.31% copper in the inferred category.

These numbers come from the preliminary economic assessment of June 2023. It estimated a $2.7 billion after-tax net present value with an 8% discount at a copper price of $3.75/lb. The mine would have a 27-year life. Total production is anticipated to be 322 million lb. of copper in cathodes.

McEwen is currently working on a bankable feasibility study for Los Azules, and it is due by the end of the first quarter 2025. The project will be a heap leach operation, with no tailings, to be powered by 100% renewable energy. It is expected to reach carbon neutrality by 2038.

https://www.mining.com/mcewen-copper-makes-share-offer-of-70-million-to-advance-los-azules/

Tom Petty ~ Runnin' Down A Dream (remaster)

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