McEwen’s 46.3%-owned subsidiary, McEwen Copper, closed a $240 million senior secured 4-year term loan facility with a syndicate of lenders. Participants include Sprott Natural Resource Investment Partners for $112 million; Rob McEwen, chairman and chief owner of the company, for $85 million; and other lenders for a total of $43 million.
The proceeds of the term loan will be used to continue advancing engineering and early works of the Los Azules copper project in San Juan, Argentina, and for general corporate purposes. A final investment decision and full project financing is expected in mid-2027, with commercial copper cathode production targeted for 2030, subject to project financing and customary approvals. The term loan provides funding while McEwen Copper advances the broader project debt financing for Los Azules, for which Societe Generale was appointed sole financial advisor in May 2026. Preparations for a potential initial public offering of McEwen Copper continue in parallel.
The principal amount of the term loan will bear interest at 12.0% per annum, payable monthly, with a 4‑year term and the principal amount due on maturity. The term loan can be repaid in full or in part prior to maturity upon payment of the remaining principal and accrued interest plus a fee equal to 5% of the remaining principal. In connection with the term loan, lenders also received 15,000 5-year McEwen Copper common share purchase warrants for each $1 million of principal, with an exercise price of $40 per share.
“This financing reflects our lenders’ confidence in Los Azules and in the progress Argentina has made over the past two and a half years,” Michael Meding, managing director of McEwen Copper, said. “The initiatives of President Javier Milei have helped make Argentina an increasingly attractive destination for large-scale foreign investment. Economic stabilization, stronger credit ratings, lower country risk and the RIGI are bringing long-term capital back to the country. San Juan continues to demonstrate the qualities of a dependable mining jurisdiction, supported by strong institutions, rigorous processes and sound governance. We are proud to be building Los Azules here.”
