McEwen Copper Appoints Societe Generale as Financial Advisor for Project Debt Financing of Los Azules

McEwen Copper, a 46.3%-owned subsidiary of McEwen Mining, has appointed Société Générale as its sole financial advisor to structure and arrange a senior debt package for the Los Azules copper project in Argentina. The mandate begins immediately and covers both the preparatory and implementation phases. The bank will coordinate due‑diligence workstreams (technical, market, environmental, social, insurance) and will target a mix of export credit agencies, commercial bank debt, development finance institutions, and potential capital‑markets instruments. The engagement complements the existing collaboration with the International Finance Corporation (IFC) on ESG alignment.

The appointment is a natural, expected step in advancing Los Azules toward a Final Investment Decision (FID), which management has repeatedly targeted for year‑end 2026. Over the past year the company has: - Completed a feasibility study (Oct 2025) showing an after‑tax NPV8 of $2.94 billion and 19.8% IRR at $4.35/lb copper. - Secured Argentina’s RIGI fiscal stability regime (Sep 2025). - Signed an IFC collaboration agreement (Sep 2025) and announced that equipment/infrastructure finance proposals exceed $1.1 billion. - Reported strong Q1 2026 earnings with net income of $33.4 million and a cash balance of $56.5 million. - Continued to advance its gold production growth strategy (Stock, Grey Fox, Gold Bar, Tartan).

In this context, appointing a top‑tier global project‑finance bank is a positive reinforcement but does not, by itself, alter the investment thesis. No binding debt commitment has been obtained; the news merely confirms that the process of assembling a financing package has moved into a structured phase. No new cost, timeline, or resource data was released. The market largely anticipated such a move given the project’s enormous $3.17 billion initial capital requirement and the need for export‑credit‑led debt.

Therefore, while the news is directionally positive and demonstrates execution progress, it is routine – an incremental step that had been telegraphed in prior updates.

McEwen Mining is a diversified precious‑ and base‑metals producer with operating mines in Nevada (Gold Bar), Ontario (Fox Complex), and a 49% interest in the San José silver‑gold mine in Argentina (operated by Hochschild). The company also holds the El Gallo gold‑silver project in Mexico (Phase 1 construction targeted for mid‑2026) and, through its 46.3% stake in McEwen Copper, the generational Los Azules copper project in San Juan, Argentina.

Los Azules is the flagship growth asset. The October 2025 feasibility study outlines: - 22‑year mine life, average 148,200 tpa copper cathode (327 Mlb Cu) at C1 cash cost $1.71/lb. - Initial capex $3.17 bn; after‑tax NPV8 of $2.94 bn at $4.35/lb Cu, $6.31 bn at $5.80/lb. - RIGI tax stability for 30 years, full renewable power, no tailings dam. - Strategic partners: Nuton (Rio Tinto) 17.2%, Stellantis 18.3%.

McEwen’s gold operations aim to double production to 250‑300 koz GEOs by 2030 using the Stock Mine, Grey Fox, Gold Bar expansion, and Tartan.