Nuton’s recent $35 million investment in McEwen Copper marks a significant step forward in the financing of the Los Azules project, a copper deposit poised to play a major role in the future of copper production. This latest infusion of capital, which includes the purchase of nearly 1.17 million shares, comes as part of a broader funding strategy that has now amassed a total of $56 million when combined with the first tranche. The participation of two other investors, contributing an additional $2 million, underscores a growing confidence in the project’s potential.
Los Azules, located in the Andes Mountains just 80 km northwest of Calingasta, is not just another copper deposit; it boasts an impressive mineralization profile that stretches over 4 km along strike and spans approximately 2.2 km across. The resource estimates are staggering, with 10.9 billion pounds of ore grading 0.40% copper in the indicated category and a whopping 26.7 billion pounds averaging 0.31% in the inferred category. This robust resource base is projected to support an average production of 322 million pounds of copper cathodes annually over a 27-year lifespan.
A preliminary economic assessment released in June 2023 paints a promising picture for Los Azules, estimating an after-tax net present value of $2.7 billion at an 8% discount rate, alongside an internal rate of return of 21.2% based on a copper price of $3.75 per pound. With a payback period of just 3.2 years, the project is shaping up to be not only economically viable but also a potentially lucrative venture for investors.
McEwen Copper, established by McEwen Mining in mid-2021, is currently working on a bankable feasibility study for the Los Azules project, set to be published in the first half of 2025. This study will be critical in determining the project’s final economic viability and operational strategy. Notably, the company is exploring innovative heap leach technology in partnership with the Rio venture, which promises to deliver both economic and environmental advantages over traditional milling methods. This focus on sustainable practices is further emphasized by the project’s commitment to being powered by 100% renewable energy and achieving carbon neutrality by 2038.
In the wake of this financing round, Nuton has nearly doubled its stake in McEwen Copper to 17.2% on a fully diluted basis, a clear indication of its faith in the project’s future. The current shareholder landscape is robust, featuring McEwen Mining at 46.4%, Stellantis at 18.3%, Rob McEwen at 12.7%, and Victor Smorgon Group at 3.0%. With around 32.8 million common shares outstanding, McEwen Copper now boasts a post-money market value of $984 million.
As the demand for copper surges—driven by the global transition to renewable energy and electric vehicles—projects like Los Azules could emerge as critical players in the supply chain. The combination of innovative technology, strong financial backing, and a commitment to sustainability positions McEwen Copper not just as a mining operation but as a potential leader in the future of responsible resource extraction. The implications of this investment ripple beyond immediate financial gains; they signal a shift towards more sustainable practices in the mining sector, which is increasingly vital in today’s environmentally conscious world.
