Stellantis (NYSE: STLA) continues to throw around Argentinian Peso’s as it works to build out its electric vehicle supply chain. The company this morning concluded a second investment into McEwen Copper, a subsidiary of McEwen Mining (NYSE: MUX), following an initial investment in February.
As of this morning, Stellantis has invested an additional ARS $42 billion into McEwen Copper, which today equates to just under US$120 million. The investment follows an ARS $30 billion investment in February of this year, which at the time was valued at US$155 million. With the deterioration of the Argentinian Peso however, that investment in terms of USD amounts to just $116.5 million today.
The second investment will increase Stellantis’ owner in the McEwen Mining subsidiary from 14.2% to 19.4%, with the transaction valuing McEwen Copper at US$800 million. McEwen Mining meanwhile now owns a 47.7% stake in its subsidiary, with the company also announcing this morning that Nuton LLC, a Rio Tinto venture, would be investing US$10 million to increase it’s stake to 14.5%.
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As part of its investment, Stellantis has also amended its copper cathodes and concentrates purchase rights agreement with McEwen, which will permit the company to purchase a minimum of 10,000 tonnes per annum from McEwen Copper’s Los Azules mine. Current plans call for the mine to produce 100,000 tons per year of cathode copper at 99.9% purity, starting in 2027.
The transaction follows Stellantis investing US$90 million, which is to be paid in Argentinian Pesos, in Argentina Lithium (TSXV: LIT) in September to secure a 19.9% stake in its Argentinian subsidiary and a lithium offtake for 15,000 tonnes per year.
Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
