Los Azules secures u$s 240 million loan to advance in San Juan

McEwen Copper secured a u$s 240 million senior secured loan to continue engineering work and initial construction at Los Azules, its copper project located in San Juan. The financing will also cover general corporate needs.

The loan will run for four years at an annual rate of 12%. Principal will be repaid at maturity, while interest will be paid monthly. If the amount remains constant, the financial cost would reach u$s 115.2 million over the full term, not including fees or any early repayment.

The loan was granted by a group of lenders. Sprott Natural Resource Investment Partners contributed u$s 112 million, Rob McEwen provided u$s 85 million, and other lenders made up the remaining u$s 43 million. As part of the agreement, the lenders received warrants to purchase McEwen Copper common shares.

The company views the loan as a bridge until it completes the project's definitive financing structure. To advance that process, it hired Société Générale as exclusive financial advisor, with the goal of structuring larger-scale debt for the construction phase.

McEwen Copper expects to reach a final investment decision by mid-2027 and maintains its goal of starting commercial production in 2030. The timeline depends on securing the necessary funds and pending sector approvals. Total estimated investment for Los Azules stands at around u$s 4000 million.

In parallel, the company is preparing a possible initial public offering of shares. Los Azules has already been admitted to the Incentive Regime for Large Investments (RIGI), while McEwen Copper maintains that the improvement in copper prices, the completion of the feasibility study and admission to the regime have raised the project's economic value.

With information from El Cronista — Minería.