TNR Gold NSR Royalty Update - McEwen Copper's Los Azules Joins Argentina's Large Investment Incentive Regime (RIGI)

Executive Summary

• McEwen Mining announced that the Argentine government approved the Los Azules project’s participation in the RIGI, securing a US $2.672 billion investment plan covering exploration, construction and operations.
• The regime provides 30‑year legal, fiscal and customs stability—including a reduced corporate tax rate (25 % vs. 35 %), dividend withholding tax cut (50 %) and accelerated depreciation—significantly enhancing project economics.
• TNR Gold’s 0.4 % NSR royalty on Los Azules is positioned to generate substantial future cash‑flow once the project moves toward feasibility and construction, supporting the company’s transformation into a royalty‑cash‑flow generator.

Key Details

• Regime Approval: Argentine Minister of Economy Luis Caputo confirmed Los Azules’ inclusion in RIGI on 26 Sept 2025.
• Investment Scope: US $2.672 billion consolidated under a single plan for exploration, construction and operational phases at Calingasta, San Juan Province.
• Project Highlights:
• First Argentine mine slated to produce high‑purity copper cathodes for direct industrial use.
• Designed for 100 % renewable electricity, low water consumption and net‑zero carbon emissions by 2038.
• PEA (June 2023) estimates: after‑tax NPV₈% ≈ US $2.7 billion; 27‑year mine life; 10.9 bn lb indicated Cu at 0.40 % grade plus 26.7 bn lb inferred at 0.31 %.
• Economic Impact: Project projected to generate >US $30 billion in export revenues and deliver significant foreign‑currency inflows, employment and tax revenue for Argentina.
• Fiscal Incentives (RIGI):
• Corporate income tax reduced to 25 % (from 35 %).
• Dividend withholding tax cut by 50 %.
• Accelerated depreciation on new capital assets.
• Early VAT recovery and streamlined customs/FX procedures for capital imports and debt repayment.
• Timeline & Next Steps:
• Environmental Impact Declaration approved Dec 2024.
• Feasibility study slated for completion by end‑Oct 2025.
• Construction to commence pending detailed engineering and financing closure.
• Strategic Partnerships & Capital Commitments:
• Rio Tinto’s Venture Nuton invested US $100 million; Stellantis contributed ARS $72 billion (2023).
• These partners may provide technology, capital and market offtake support for “green copper.”
• TNR Gold Positioning:
• Holds a 0.4 % NSR royalty on Los Azules (0.04 % on behalf of a shareholder).
• No capital contribution required from TNR; future royalty cash‑flows expected to enhance shareholder value.
• Additional Royalty Holdings (context):
• 1.5 % NSR royalty on Mariana Lithium Project (Argentina) – partially repurchased by Ganfeng’s subsidiary for CAN $900,000.
• 7 % NPR on Batidero I & II (Josemaria Project).
• 90 % interest in Shotgun Gold porphyry project (Alaska).

Notable Quotes

• Michael Meding, VP of McEwen Copper: “The RIGI approval reinforces our long‑term commitment to Argentina and provides a clear framework for engagement with the State and future partners.”
• Rob McEwen, Chairman & Chief Owner, McEwen Inc.: “RIGI sends a powerful message that Argentina is open to supporting long‑term projects in critical metals; it strengthens confidence and creates the right environment to secure financing.”
• Kirill Klip, Executive Chairman, TNR Gold: “The admission to RIGI moves Los Azules closer to construction and could be a catalyst for improved market valuation of our royalty assets.”