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

McEwen Copper Inc., a 46.3%-owned subsidiary of McEwen Inc., has closed a $240 million senior secured 4-year term loan facility. The lenders include Sprott Natural Resource Investment Partners, which contributed $112 million, Rob McEwen, who provided $85 million, and other lenders that supplied $43 million. The loan carries a 12.0% interest rate, payable monthly, and includes a 5% prepayment fee. As part of the agreement, lenders received warrants exercisable at $40 per share.

Proceeds from the facility will advance engineering and early works for the Los Azules copper, gold, and silver project in Argentina. The project is on track for a Final Investment Decision (FID) in mid-2027, with commercial production targeted for 2030. TNR Gold holds a 0.4% Net Smelter Returns (NSR) royalty on Los Azules, with 0.04% held on behalf of a shareholder. TNR Gold explicitly states it has no capital contribution obligation for the project's development.

The financing marks a significant de-risking milestone for the Los Azules project, validating the October 2025 feasibility study and securing institutional backing from Sprott and Rob McEwen. For TNR Gold, the impact is incremental and expected. The company's business model relies on royalty cash flows without capital calls, so this financing does not immediately impact TNR's balance sheet or share count.

The news aligns with the historical progression of Los Azules, following the RIGI approval in September 2025, the feasibility study in October 2025, and the appointment of Societe Generale as financial advisor in May 2026. The primary near-term catalyst remains the September 22, 2026 Annual General Meeting, where a proxy contest between incumbent management and activist shareholder Eucalyptus Resources will determine board control. Operational progress does not mitigate the immediate governance and liquidity risks facing TNR.

TNR Gold Corp. operates as a royalty and streaming company focused on green energy metals and gold, with assets primarily in Argentina and Alaska. Its flagship asset is the Los Azules Copper Project in Argentina, where the company holds a 0.4% NSR royalty. Los Azules is a large-scale, low-cost copper producer with a 22-year mine life and the potential for a 55-year extension, targeting initial production of 205 ktpa copper cathodes.

The company also holds additional assets in Argentina, including the Mariana Lithium Project, where TNR retains a 1.5% NSR royalty subject to a 1.0% repurchase by Ganfeng, and the Josemaria Project, which carries a 7% Net Profit Interest (NPR) on Batidero I & II, developed by a Lundin Mining and BHP joint venture. In Alaska, TNR holds a 90% interest in the Shotgun Gold Project, a porphyry gold project for which management is actively seeking a strategic joint venture partner.