McEwen Copper has signed an agreement with an international financial institution to manage a $2.4 billion loan package financing part of the Los Azules copper project in Argentina, Michael Meding, the firm’s vice president and general manager, told Reuters.
Michael Meding, McEwen Copper’s vice president and general manager, said the loan is part of a total $4 billion financing package for the project. He declined to name the lender but said an announcement would be made soon.
“I’ve already signed an agreement with an entity that handles the entire debt financing package with international export development agencies,” the executive said in a recent interview in the Calingasta Department, in the Andean province of San Juan, where the project is located.
Los Azules, situated 3,500 meters (11,480 feet) above sea level, is one of the world’s 10 largest undeveloped copper projects. It aims to become the first mine to produce copper cathodes in Argentina.
Meding said the company is targeting a 40-60 split between equity and debt for the $4 billion total, meaning $1.6 billion would be funded through equity.
The executive also told Reuters on Saturday that he is in talks with Rio Tinto, as previously reported, and is in discussions with parent company McEwen Mining and “several large North American, European, and Asian industrial groups” to secure the $1.6 billion financing.
Rio Tinto holds a 17.2% stake in Los Azules through its copper leaching technology company, Nuton LLC, which has already invested $100 million. This technology would extend the life of Los Azules by 33 years, according to a feasibility study published by McEwen Copper.
Los Azules plans to begin operations around 2029 or 2030, with average production during the first five years of approximately 204,800 metric tons of copper cathodes per year.
The company is also making steady progress toward an initial public offering (IPO) of around $300 million toward the end of the year, Meding said.
“October, November, or December would be a good time to do it, especially with the current copper price and the outlook,” he said.
(By Lucila Sigal and Natalia Siniawski; Editing by Sarah Morland)
