McEwen Copper Picks Firm to Manage US$2.4 Billion Loan for Los Azules

McEwen Copper, a subsidiary of McEwen Mining (TSX:MUX,NYSE:MUX), has enlisted an international financial institution to manage a US$2.4 billion debt package to fund the construction of its Los Azules project in the Argentine Andes.

The package forms the backbone of a targeted US$4 billion capital structure intended to construct one of the world’s 10 largest undeveloped copper deposits, as per Reuters.

McEwen Copper Vice President and General Manager Michael Meding said the firm is structuring the development with a 40/60 split between equity and debt. While the identity of the mandated lead arranger remains temporarily under wraps, Meding indicated that a formal announcement is imminent.

“I’ve already signed an agreement with an entity that handles the entire debt financing package with international export development agencies,” he told Reuters in an interview.

To cover the remaining US$1.6 billion equity requirement, McEwen Copper is planning to leverage its existing strategic partnerships while actively courting new capital. Meding confirmed ongoing dialogue with parent company McEwen Mining, as well as Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO).

The Anglo-Australian major already holds a 17.2 percent stake in Los Azules via its leaching technology venture, Nuton, which previously injected US$100 million into the development.

Last month, Meding held talks with the US Export-Import Bank and the US International Development Finance Corporation. The agencies are central to the Trump administration’s critical minerals strategy, specifically “Project Vault,” a US$10 billion mandate designed to procure and stockpile key metals for American automakers and tech firms while bypassing Chinese supply chains.

Beyond existing stakeholders, Meding noted that the company is in discussions with “several large North American, European, and Asian industrial groups.”

Last year, Los Azules was admitted to Argentina’s Large Investment Incentive Regime, a crucial mechanism that provides long-term fiscal and regulatory stability in a historically volatile jurisdiction for foreign capital. A month later, McEwen finalized a definitive feasibility study that anchored the project’s base-case net present value at US$2.9 billion.

Due to its elevation, Los Azules is designed to bypass traditional, water-heavy milling.

Instead of producing raw concentrate for offshore smelting, the operation will utilize heap leaching to produce London Metal Exchange Grade A copper cathode directly on site.

Operations are slated to commence between 2029 and 2030.

During its first five years, Los Azules is projected to churn out roughly 204,800 metric tons of copper cathode annually, aiming to be the first mine of its kind in Argentina to produce the finished metal.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.