TNR sees Los Azules added to Argentina's RIGI program

Executive Summary

• Los Azules copper‑gold‑silver project has been approved to participate in Argentina’s Large Investment Incentive Regime (RIGI), securing a $2.672 billion investment plan covering exploration, construction and operation.
• The inclusion provides 30‑year legal, fiscal and customs stability—including a reduced corporate tax rate (25 %), dividend withholding tax cut (50 %) and accelerated depreciation—enhancing project economics and financing prospects.
• Project milestones: environmental impact declaration approved (Dec 2024), feasibility study on track for completion by Oct 2025, and construction ready to commence pending detailed engineering and financing.

Key Details

• RIGI Approval: Confirmed by Argentine Minister of Economy Luis Caputo; Los Azules now part of a single strategic investment plan valued at US$2.672 billion.
• Economic Impact: Project projected to generate > US$30 billion in export revenues (PEA base case, June 2023) and deliver substantial foreign‑currency inflows to Argentina.
• Fiscal Incentives:
• Corporate tax rate reduced to 25 % (from 35 %).
• Dividend withholding tax cut by 50 %.
• Accelerated depreciation for new capital, early VAT recovery, and long‑term tax stability.
• Customs & FX Benefits: Streamlined import of capital goods, facilitated debt repayment, and stable foreign‑exchange procedures for the project’s lifespan.
• Project Timeline:
• Environmental Impact Declaration (EIA) approved – Dec 2024.
• Feasibility study expected end Oct 2025.
• Construction to begin after detailed engineering and financing are secured.
• Resource Highlights (PEA, June 2023):
• After‑tax NPV₈% ≈ US$2.7 billion at Cu price $3.75/lb.
• Mine life: 27 years.
• Indicated resource: 10.9 bn lbs Cu @ 0.40 %, inferred: 26.7 bn lbs Cu @ 0.31 %.
• Sustainability Claims: Designed for minimal water use, low carbon emissions, powered 100 % by renewable electricity, aiming for net‑zero carbon by 2038.
• Strategic Partners & Investments:
• Rio Tinto’s Nuton invested US$100 million in McEwen Copper.
• Stellantis contributed AR$72 billion (≈ US$400 million) in 2023.
• Quotes:
• “The approval reinforces McEwen Copper's long‑term commitment to Argentina… enhances operational predictability and establishes a clear framework for engagement with the state and future partners.” – Michael Meding, VP & GM, Los Azules.
• “RIGI sends a powerful message to international investors: Argentina is open to supporting long‑term projects in energy and critical metals.” – Rob McEwen, Chairman & Chief Owner, McEwen Inc.

Notable Quotes

• Kirill Klip (TNR Gold): “The admission to the Regime of Incentives for Investment (RIGI) could move the Los Azules copper project development closer to a construction decision.”