McEwen Copper, a subsidiary 46.3% owned by McEwen, has concluded a $240m senior secured term loan aimed at advancing the Los Azules copper project in San Juan, Argentina.
The facility, which has a four-year term, was arranged with a syndicate of lenders.
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Sprott Natural Resource Investment Partners contributed $112m, McEwen chairman and chief owner Rob McEwen provided $85m and additional lenders supplied a total of $43m.
Proceeds from the loan will be directed towards engineering and early works for Los Azules, as well as for general corporate activities.
A final investment decision (FID) and plans for comprehensive project financing are anticipated by mid-2027.
The company aims to begin commercial copper cathode production in 2030, subject to necessary approvals and financing.
Societe Generale was named sole financial advisor for wider project debt financing in May 2026, while preparations continue for a possible initial public offering of McEwen Copper.
The principal amount of the facility accrues interest at 12% per annum, payable monthly, with the bulk due at maturity.
There is an option to repay early if the outstanding principal, accrued interest, and a 5% fee on the remaining principal are paid.
In conjunction with the loan, participants received 15,000 five-year McEwen Copper common share purchase warrants for every $1m of principal, with a strike price of $40 per share.
Recent activities at Los Azules include completing a 2025-2026 field campaign with over 5,600m of drilling.
The company reported geotechnical results exceeding expectations, providing benefits for mine design.
Engineering contracts for process equipment have been assigned to Metso, and tenders for the mining fleet are in final review, with the engineering, procurement and construction management (EPCM) contractor expected to be selected by the end of 2026.
McEwen Copper managing director Michael Meding said: “This financing reflects our lenders’ confidence in Los Azules and in the progress Argentina has made over the past two and a half years. The initiatives of President Javier Milei have helped make Argentina an increasingly attractive destination for large-scale foreign investment.
“Economic stabilisation, stronger credit ratings, lower country risk and the RIGI are bringing long-term capital back to the country.”
