The first refined copper project advances: it obtained US$ 240 million in financing and will build its own power line

From the Canadian operator McEwen Copper they assure that prepare to make final investment decision by mid-2027 and project start commercial production in 2030.

Financing is still far from covering the total investment what the future mine will demand, estimated at around US$2.7 billion (has RIGI approval). However, it will allow the firm to sustain the project while designing a larger scale financial package to reach the final investment decision.

In parallel with the financing, Los Azules is advancing with the necessary infrastructure to launch the project. The company presented the project to build a 220 kV, 122 kilometer power line that will connect the future mine with the Calingasta Transformer Station.

The work will require a investment estimated at US$ 300 millionwill have an execution period of about 30 months and could begin in January 2027once environmental approval has been obtained. At the peak of construction, it is estimated that it will require about 450 workers.

Los Azules has a particularity compared to the other large copper projects advancing in Argentina: It is the first to produce copper cathodes, that is, refined copper plates ready for industrial use.

Most of the developments planned in the country will largely produce copper concentrate, a material that requires a subsequent smelting and refining process, generally carried out in other markets.

The possibility of producing cathodes does not depend only on an industrial decision, but is linked to the characteristics of the deposit. Part of the copper from Los Azules can be recovered through a specific process that allows cathodes with a purity of 99.99% to be produced in the mine itself. This scheme would allow Argentina to export a product with a higher degree of elaboration.

The credit was granted to McEwen Copper through a four-year senior secured loan. Sprott Natural Resource Investment Partners contributed US$ 112 millionwhile Rob McEwen, president and major shareholder of McEwen Inc.personally lent other US$85 million. The remaining $43 million came from other lenders.

The loan will have a 12% annual interest ratewith monthly payments, while the capital must be paid at maturity. Creditors will also be able to buy McEwen Copper shares under certain conditions.

Funds will be used to continue engineering, execute early work and cover corporate needs while the company negotiates principal financing. For this process, McEwen Copper appointed Société Générale as exclusive financial advisor in May. In parallel, A possible initial public offering of shares is being evaluated.

During the 2025-2026 campaign, more than 5,600 meters of drilling were carried out. The geotechnical studies will allow the design of the future open pit mine to be adjusted. At the busiest time of last season, Los Azules employed more than 500 people. According to McEwen Copper, About 90% were hired in San Juan.

The project already has approval to join the RIGI, which grants it fiscal, customs and exchange stability for a long-term investment. The actual construction, however, remains conditional on the closing of the financial packagethe final investment decision and obtaining the corresponding sector permits.