McEwen Copper announces additional $30M investment by Rio Tinto venture

McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (MUX), announced a binding agreement for an additional $30M investment by Nuton LLC, a Rio Tinto (RIO) Venture, and existing McEwen Copper shareholder. Nuton has agreed to invest $30M to acquire shares of McEwen Copper in a two-part transaction expected to close no later than March 10th, 2023 consisting of: 1. Private placement of 350,000 McEwen Copper common shares, and 2. Purchase of 1,250,000 common shares owned by McEwen Mining in a secondary sale. Proceeds of the subscription and purchase are expected to be approximately $6.5M to McEwen Copper and $23.5M McEwen Mining, respectively. The proceeds of the private placement will be used to advance development of the Los Azules copper project in San Juan, Argentina, and for general corporate purposes. After closing, Nuton will own 14.2% of McEwen Copper on a fully diluted basis, and McEwen Mining will own 51.9%. The transaction values McEwen Copper at approximately $550M. In connection with the Transaction, McEwen Copper and certain of its affiliates entered into an Amended Collaboration Agreement and a Copper Cathodes and Concentrates Purchase Rights Agreement, including that Nuton will have the opportunity to provide local currency funding, in certain circumstances, for advancement of the Los Azules project.