McEwen Copper has taken a significant step toward developing the Los Azules copper project in Argentina by signing an agreement with an international financial institution to arrange a $2.4 billion loan package. This debt component forms a key part of a broader $4 billion financing plan for the mine, located in the Calingasta Department of San Juan province.
The company aims to balance the funding with a 40-60 equity-debt split, targeting $1.6 billion in equity investment. Discussions are underway with major players, including Rio Tinto, parent company McEwen Mining, and various industrial groups from North America, Europe, and Asia, to secure this portion of the capital.
Rio Tinto already holds a 17.2% stake in Los Azules through its subsidiary Nuton LLC, which has contributed $100 million and provided copper leaching technology expected to extend the mine’s operational life by over three decades, per a feasibility study.
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“I’ve already signed an agreement with an entity that handles the entire debt financing package with international export development agencies,” said Michael Meding, Vice President and General Manager at McEwen Copper, highlighting the structured approach to securing the loan.
Los Azules stands as a globally significant asset, ranking among the largest undeveloped copper deposits worldwide. The project is poised to become a pioneer in producing copper cathodes in Argentina, with operations slated to commence around 2029 or 2030. Once active, the mine is projected to yield an average of 204,800 metric tons of copper cathodes annually during its initial five years.
In parallel, McEwen Copper is preparing for a $300 million initial public offering, potentially launching as early as October. “October, November, or December would be a good time to do it, especially with the current copper price and the outlook,” Meding noted, signaling confidence in market conditions.
The path forward, however, hinges on locking in the equity commitments to complement the debt arrangement. With production still years away, the company’s ability to finalize partnerships and funding will be critical to meeting its ambitious timeline. For now, the focus remains on building momentum, as the $4 billion financing package represents one of the largest capital raises for a copper project in recent memory.
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