McEwen Copper secures US$240 million to advance Los Azules

McEwen Copper obtained a US$240 million senior secured loan to continue engineering and early-stage works at Los Azules, its copper project located in the province of San Juan.

The loan carries a four-year term and was provided by a group of lenders. Sprott Natural Resource Investment Partners committed US$112 million, Rob McEwen contributed US$85 million, and other financiers made up the remaining US$43 million.

The funds will be used primarily for project development and general corporate purposes. In parallel, the company is working on a larger-scale financing structure to advance construction and the full-scale development of Los Azules.

McEwen Copper continues to target a final investment decision and completion of financing by mid-2027. The company expects to begin commercial production of copper cathodes in 2030, although that timeline remains contingent on funding availability and the approval of sector permits.

The loan carries an annual interest rate of 12%, with monthly interest payments and principal repayment at maturity. The transaction also includes warrants to acquire McEwen Copper common shares, with a five-year term and an exercise price of US$40 per share.

Société Générale was engaged as exclusive financial advisor to structure the project's debt. The company is also continuing preparations for a potential initial public offering of McEwen Copper.

With information from Panorama Minero.