McEwen Copper Completes US$240 Million Term Loan to Advance Los Azules Toward Final Investment Decision

McEwen Inc. announced that its 46.3%-owned subsidiary, McEwen Copper Inc., has closed a $240 million senior secured four-year term loan facility. The financing was provided by a syndicate that includes Sprott Natural Resource Investment Partners with $112 million, Rob McEwen with $85 million, and other lenders contributing $43 million.

The loan carries a 12.0% per annum interest rate payable monthly and includes a 5% prepayment fee. Warrants were issued to lenders at a rate of 15,000 warrants per $1 million of principal at a $40 exercise price. Proceeds from the facility are designated for advancing engineering and early works on the Los Azules copper project in Argentina, as well as for general corporate purposes.

Engineering for the Los Azules project is currently ahead of schedule, with key process equipment packages for SX/EW, sulfuric acid, and crushing awarded to Metso. The selection of an EPCM contractor is expected in the fourth quarter of 2026. Consequently, the Final Investment Decision timeline has been pushed to mid-2027, with commercial copper cathode production targeted for 2030.

Community engagement efforts have resulted in greater than 90% trust and acceptance in nearby communities. Additionally, the heavy snow season is expected to refill hydroelectric reservoirs and recharge aquifers. McEwen Inc. retains a 1.25% net smelter return (NSR) on Los Azules, which is projected to generate approximately $1.4 billion in undiscounted pre-tax cash flow. The company’s 46.3% interest in McEwen Copper was previously valued at US$456 million based on October 2024 financing.

McEwen Inc. (MUX) has secured a $240 million term loan, a financing step that de-risks the engineering phase of the Los Azules project. However, the final investment decision (FID) has been delayed to mid-2027, marking a departure from the previously targeted Q4 2026 timeline. The financing carries a 12% interest rate and includes warrant issuance, adding cost and dilution. While these terms are standard for project finance, they warrant monitoring.

McEwen Inc. operates a diversified portfolio of gold, silver, and copper assets across Canada, the United States, and Argentina. Key producing assets include the Fox Complex in Ontario, the Gold Bar Mine Complex in Nevada, and a 49% interest in the San José mine in Argentina. The company’s development assets include the Tartan Mine Project in Manitoba, the El Gallo Complex in Mexico, and McEwen Copper's Los Azules project in Argentina.

The company targets 250,000–300,000 gold equivalent ounces (GEOs) of annual production by 2030. McEwen Inc. is led by CEO and Chief Owner Rob McEwen, who holds 14% ownership.