McEwen Copper secures $240m loan for Los Azules project

McEwen Copper Secures $240 Million Loan to Drive Los Azules Copper Project Forward in Argentina

San Juan, Argentina – August 28, 2026 – McEwen Copper, a significant player in the global copper exploration and development landscape and a subsidiary 46.3% owned by McEwen, has announced the successful closure of a $240 million senior secured term loan. This critical financial injection is earmarked for the accelerated development of its flagship Los Azules copper project, strategically located in the San Juan province of Argentina. The four-year facility marks a pivotal moment for the project, providing the necessary capital to advance key engineering initiatives, commence early works, and support general corporate operations, as the company targets commercial copper cathode production by 2030.

The $240 Million Capital Infusion

The syndicated loan facility demonstrates strong confidence from a diverse group of lenders in the Los Azules project's viability and future prospects. Leading the contributions, Sprott Natural Resource Investment Partners provided a substantial $112 million. Complementing this, Rob McEwen, the chairman and chief owner of McEwen, personally contributed $85 million, underscoring his deep commitment and belief in the project. An additional $43 million was supplied by other lenders, collectively forming the $240 million total.

Terms of the loan facility include a 12% per annum interest rate, payable monthly, with the principal amount largely due at maturity. This structure provides financial flexibility during the intensive development phase of Los Azules. The agreement also features an early repayment option, allowing the company to retire the debt ahead of schedule upon payment of the outstanding principal, accrued interest, and a 5% fee on the remaining principal. As part of the financing package, participants in the loan received 15,000 five-year McEwen Copper common share purchase warrants for every $1 million of principal contributed, with a strike price set at $40 per share. This warrants structure aligns the interests of the lenders with the long-term growth and success of McEwen Copper.

Advancing the Los Azules Project

The proceeds from this significant loan are strategically allocated to accelerate critical pre-production activities at Los Azules. Primarily, the funds will be directed towards:

• Engineering: Advancing detailed engineering studies crucial for optimizing mine design, processing facilities, and infrastructure.
• Early Works: Initiating on-site preparatory activities, which could include access road construction, camp infrastructure, and initial earthworks.
• General Corporate Activities: Supporting ongoing operational expenses and strategic initiatives for McEwen Copper.

This phased approach is designed to de-risk the project as it moves towards a final investment decision (FID) and comprehensive project financing, both of which are anticipated by mid-2027. The company's ambitious but achievable goal is to commence commercial copper cathode production by 2030, a timeline contingent upon securing all necessary regulatory approvals and the successful arrangement of broader project financing.

Key Operational Progress and Milestones

Even prior to securing this latest financing, McEwen Copper has been actively progressing the Los Azules project through a series of foundational activities. A notable achievement was the completion of the 2025-2026 field campaign, which involved an extensive drilling program exceeding 5,600 meters. This drilling was crucial for refining the geological model and resource estimates, and the company has reported geotechnical results that surpassed expectations, providing significant benefits for the optimization of mine design.

In parallel, the company has been moving forward with key procurement and contracting processes. Engineering contracts for critical process equipment have been assigned to Metso, a global leader in mineral processing technology. Furthermore, tenders for the mining fleet are currently in the final review stages, signaling progress towards securing essential heavy equipment for future operations. McEwen Copper expects to select its engineering, procurement, and construction management (EPCM) contractor by the end of 2026, a crucial step that will oversee the design, procurement, and construction phases of the project.

Strategic Financial and Corporate Vision

Beyond the immediate term loan, McEwen Copper is laying the groundwork for its long-term financial strategy. In May 2026, Societe Generale was appointed as the sole financial advisor for wider project debt financing. This partnership with a global financial institution of Societe Generale's caliber is indicative of the project's scale and the company's commitment to securing robust, long-term funding. Concurrently, preparations are underway for a possible initial public offering (IPO) of McEwen Copper, an event that could provide significant capital and liquidity, further cementing its position in the market.

The ownership structure of McEwen Copper, with McEwen holding a 46.3% stake, provides a strong corporate foundation, leveraging the experience and resources of its parent company while allowing McEwen Copper to pursue specialized copper development strategies.

Argentina's Resurgent Mining Investment Climate

A key factor underpinning the confidence of lenders and investors in the Los Azules project is the significantly improved investment climate in Argentina. Michael Meding, Managing Director of McEwen Copper, highlighted this during his comments, stating, "This financing reflects our lenders’ confidence in Los Azules and in the progress Argentina has made over the past two and a half years."

Meding specifically credited the initiatives of President Javier Milei for making Argentina an "increasingly attractive destination for large-scale foreign investment." The government's focus on economic stabilization, coupled with stronger credit ratings, lower country risk, and the implementation of frameworks like the Regime for Investment Guarantees (RIGI), are collectively bringing long-term capital back to the country. For a capital-intensive sector like mining, a stable and predictable regulatory and economic environment is paramount. Argentina's renewed commitment to these principles is creating a more favorable operating landscape for major projects like Los Azules, which require substantial, long-term capital commitments.

Broader Implications for the Copper Market

The advancement of Los Azules holds significant implications for the global copper market. Copper is an indispensable metal for the ongoing global energy transition, being a critical component in electric vehicles, renewable energy infrastructure, and smart grid technologies. As the world accelerates its shift away from fossil fuels, demand for copper is projected to surge dramatically in the coming decades, creating a structural supply deficit that threatens to impede decarbonization efforts.

Projects like Los Azules, with its substantial resource potential, are vital to addressing this looming supply gap. Located in a geologically prospective region of the Andes, Los Azules represents a significant future source of copper cathode, a refined product directly usable in manufacturing. Successful development and timely production from such large-scale operations are essential to meeting the burgeoning demand and stabilizing global copper prices, thereby facilitating the broader industrial and environmental objectives dependent on this crucial commodity.

Future Outlook and Next Steps

With the $240 million loan secured, McEwen Copper is well-positioned to execute its immediate development plan for Los Azules. The focus will now shift to finalizing the EPCM contractor selection by the end of 2026 and diligently progressing the detailed engineering and early works. The next major inflection point will be the anticipated final investment decision and the securing of comprehensive project financing by mid-2027. Should these milestones be met successfully, the vision of Los Azules commencing commercial copper cathode production in 2030 will become a reality, contributing significantly to both McEwen Copper's portfolio and the global copper supply chain. The project's progress will continue to be closely watched by industry stakeholders, keen on the role it will play in the future of the copper market.