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McEwen Copper Announces an Additional US$35 Million Investment by Nuton, a Rio Tinto Venture

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McEwen Copper, a subsidiary of McEwen Mining (NYSE: MUX), has secured an additional $35 million investment from Nuton, a Rio Tinto Venture, through the purchase of 1,166,666 common shares at $30.00 per share. This investment is part of a larger $70 million private placement offering. The second tranche also included $2 million from two other investors. Following this transaction, Nuton owns 17.2% of McEwen Copper, with the company's shareholder structure now comprising McEwen Mining (46.4%), Stellantis (18.3%), Nuton (17.2%), Rob McEwen (12.7%), Victor Smorgon Group (3.0%), and others (2.0%). The proceeds will fund the Los Azules copper project feasibility study, due in H1 2025.

McEwen Copper, una controllata di McEwen Mining (NYSE: MUX), ha ottenuto un ulteriore investimento di 35 milioni di dollari da Nuton, una joint venture di Rio Tinto, tramite l'acquisto di 1.166.666 azioni ordinarie a 30,00 dollari per azione. Questo investimento fa parte di un offerta di collocamento privato di 70 milioni di dollari. La seconda tranche ha incluso anche 2 milioni di dollari da altri due investitori. A seguito di questa transazione, Nuton possiede il 17,2% di McEwen Copper, con la struttura azionaria dell'azienda che ora comprende McEwen Mining (46,4%), Stellantis (18,3%), Nuton (17,2%), Rob McEwen (12,7%), Victor Smorgon Group (3,0%) e altri (2,0%). I proventi finanzieranno lo studio di fattibilità del progetto copper Los Azules, previsto per il primo semestre del 2025.

McEwen Copper, una subsidiaria de McEwen Mining (NYSE: MUX), ha asegurado una inversión adicional de 35 millones de dólares de Nuton, una empresa conjunta de Rio Tinto, a través de la compra de 1.166.666 acciones comunes a 30,00 dólares por acción. Esta inversión es parte de una oferta de colocación privada de 70 millones de dólares. La segunda parte también incluyó 2 millones de dólares de otros dos inversores. Tras esta transacción, Nuton posee el 17,2% de McEwen Copper, con la estructura de accionistas de la compañía ahora compuesta por McEwen Mining (46,4%), Stellantis (18,3%), Nuton (17,2%), Rob McEwen (12,7%), Victor Smorgon Group (3,0%) y otros (2,0%). Los ingresos financiarán el estudio de viabilidad del proyecto de cobre Los Azules, programado para el primer semestre de 2025.

McEwen CopperMcEwen Mining (NYSE: MUX)의 자회사로, Rio Tinto의 합작 투자회사인 Nuton으로부터 3천5백만 달러의 추가 투자를 확보했습니다. 이는 주당 30.00달러에 1,166,666주를 매입하는 방식으로 이루어졌습니다. 이 투자는 7000만 달러의 사모 배급 제안의 일환입니다. 두 번째 분할에서도 다른 두 투자자로부터 200만 달러가 포함되었습니다. 이 거래 이후 Nuton은 McEwen Copper의 17.2%를 소유하게 되었으며, 회사의 주주 구조는 McEwen Mining (46.4%), Stellantis (18.3%), Nuton (17.2%), Rob McEwen (12.7%), Victor Smorgon Group (3.0%) 및 기타 (2.0%)로 구성됩니다. 수익금은 2025년 상반기에 예정된 Los Azules 구리 프로젝트의 타당성 조사를 지원하는 데 사용될 것입니다.

McEwen Copper, une filiale de McEwen Mining (NYSE: MUX), a sécurisé un investissement supplémentaire de 35 millions de dollars de Nuton, une coentreprise de Rio Tinto, par l'achat de 1.166.666 actions ordinaires à 30,00 dollars par action. Cet investissement fait partie d'une offre de placement privé de 70 millions de dollars. La deuxième tranche a également inclus 2 millions de dollars provenant de deux autres investisseurs. Suite à cette transaction, Nuton possède 17,2 % de McEwen Copper, la structure actionnariale de la société étant désormais composée de McEwen Mining (46,4 %), Stellantis (18,3 %), Nuton (17,2 %), Rob McEwen (12,7 %), Victor Smorgon Group (3,0 %) et d'autres (2,0 %). Les fonds seront utilisés pour financer l'étude de faisabilité du projet de cuivre Los Azules, prévue pour le premier semestre 2025.

McEwen Copper, eine Tochtergesellschaft von McEwen Mining (NYSE: MUX), hat eine weitere Investition in Höhe von 35 Millionen US-Dollar von Nuton, einem Joint Venture von Rio Tinto, durch den Kauf von 1.166.666 Stammaktien zu je 30,00 US-Dollar pro Aktie gesichert. Diese Investition ist Teil eines größeren Privatplatzierungsangebots über 70 Millionen US-Dollar. Die zweite Tranche umfasste auch 2 Millionen US-Dollar von zwei anderen Investoren. Nach dieser Transaktion hält Nuton 17,2 % an McEwen Copper, wobei die Aktionärsstruktur des Unternehmens jetzt aus McEwen Mining (46,4 %), Stellantis (18,3 %), Nuton (17,2 %), Rob McEwen (12,7 %), Victor Smorgon Group (3,0 %) und anderen (2,0 %) besteht. Die Erlöse werden zur Finanzierung der Machbarkeitsstudie des Kupferprojekts Los Azules verwendet, die für das erste Halbjahr 2025 vorgesehen ist.

Positive
  • Secured $35 million investment from Rio Tinto's Nuton
  • Total of $56 million raised in current offering
  • Post-money market value of $984 million
  • Strong strategic investors including Stellantis and Rio Tinto's Nuton
Negative
  • None.

Insights

This $35 million investment from Rio Tinto's Nuton venture represents significant validation for McEwen Copper's Los Azules project. The total raised of $56 million in this offering strengthens the company's financial position and ability to complete the important feasibility study. Nuton's increased stake to 17.2% alongside Stellantis's 18.3% ownership brings strong strategic partners that could be vital for project development and future financing.

The post-money valuation of $984 million for McEwen Copper implies significant value creation potential, especially considering parent company MUX's current market cap of $572 million. The premium pricing of $30 per share in the private placement suggests confidence in the project's fundamentals. The backing of major industry players and the structured approach to funding the feasibility study reduces development risk and enhances the probability of project success.

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) -- McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to announce closing of an additional $35 million investment by Nuton LLC, a Rio Tinto Venture.

McEwen Copper previously announced a non-brokered private placement financing of up to 2,333,333 common shares at a subscription price of US$30.00 per common share, for gross proceeds of up to US$70 million (the "Offering"). The first tranche of the Offering was led by a $14 million investment by McEwen Mining and a $5 million investment by Rob McEwen.

In this second tranche of the Offering, Nuton (a Rio Tinto Venture) has purchased an additional 1,166,666 common shares of McEwen Copper for $35 million and two other investors have acquired 66,669 common shares for $2 million. Following the closing of this second tranche of the Offering, McEwen Copper has raised a total of $56 million.

Nuton now owns 17.2% of McEwen Copper on a fully diluted basis. Following these share issuances, McEwen Copper will have 32,804,284 common shares outstanding, giving it a post-money market value of $984 million, and its shareholders are: McEwen Mining Inc. 46.4%, Stellantis 18.3%, Nuton 17.2%, Rob McEwen 12.7%, Victor Smorgon Group 3.0%, and other shareholders 2.0%.

Proceeds from the Offering will be used to advance ongoing work on the feasibility study for the Los Azules copper project, which is scheduled for publication in the first half of 2025.

Subscription for the remaining 466,664 common shares in the Offering is available to qualified accredited investors, subject to a US$1 million minimum investment and certain other conditions. The securities sold in the Offering are private and subject to transfer restrictions until such time when they become listed on a public exchange.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Nuton

Nuton is an innovative venture that aims to help grow Rio Tinto’s copper business. At the core of Nuton is a portfolio of proprietary copper leaching related technologies and capability – a product of almost 30 years of research and development. Nuton offers the potential to economically unlock copper from primary sulfide resources through leaching, achieving market-leading recovery rates and contributing to an increase in copper production at new and ongoing operations. One of the key differentiators of Nuton is the ambition to produce the world’s lowest footprint copper while having at least one Positive Impact at each of our deployment sites, across our five pillars: water, energy, land, materials and society.

About McEwen Copper

McEwen Copper Inc. holds a 100% interest in the Los Azules copper project in San Juan, Argentina and the Elder Creek copper/gold project in Nevada, USA.

Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence (2022). A PEA published in June 2023 for the project estimated a $2.7 billion after-tax NPV8% at $3.75/lb Cu, a 27-year mine life, and an updated copper resource of 10.9 billion pounds at grade 0.40% Cu (Indicated category) and an additional 26.7 billion pounds at grade 0.31% Cu (Inferred category). For more details about the Los Azules PEA click here.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this news release, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the corporation to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves, and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management of McEwen Mining Inc.

About McEwen Mining

McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 46.4% of McEwen Copper which owns the large, advanced stage Los Azules copper project in Argentina. The Company’s goal is to improve the productivity and life of its assets with the objective of increasing its share price and providing a yield. Rob McEwen, Chairman and Chief Owner, has personally invested $225 million in the companies and takes an annual salary of $1.

WEB SITE
www.mcewenmining.com

CONTACT INFORMATION

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Suite 2800, PO Box 24
Toronto, ON, Canada
M5H 1J9

Relationship with Investors:
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(647)-258-0395

Mihaela Iancu ext. 320
info@mcewenmining.com

















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FAQ

How much did Nuton invest in McEwen Copper in October 2024?

Nuton invested $35 million in McEwen Copper through the purchase of 1,166,666 common shares at $30.00 per share.

What is McEwen Copper's post-money valuation after the October 2024 investment?

McEwen Copper's post-money market value is $984 million, with 32,804,284 common shares outstanding.

Who are the major shareholders of McEwen Copper after the October 2024 investment?

The major shareholders are McEwen Mining (46.4%), Stellantis (18.3%), Nuton (17.2%), Rob McEwen (12.7%), Victor Smorgon Group (3.0%), and other shareholders (2.0%).

When is the Los Azules copper project feasibility study expected to be published?

The Los Azules copper project feasibility study is scheduled for publication in the first half of 2025.

McEwen Mining Inc.

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