07 Jul McEwen Mining to form new company to advance copper assets
McEwen Mining has announced the creation of a solely copper-focused company that will be responsible for the development of the Los Azules project in Argentina along with an exploration property in the US state of Nevada.
The NYSE and TSX-listed miner plans for McEwen Copper to raise US$80 million through a private placement and become a public company within 12 months of its closing
Owner and chief executive Rob McEwen said that a separately listed copper-focused company represents ‘an attractive copper investment vehicle’ and will allow McEwen to raise the required funds to develop ‘one of the world’s largest copper resources’.
“Currently, the market appears to be giving us little value for our Los Azules copper deposit, despite its impressive size and robust economics at present copper prices,” said McEwen in a press release.
Los Azules is an advanced large-scale porphyry copper exploration project located in the Andean Cordillera copper belt, approximately 90 km North of Glencore’s El Pachón project and near the border with Chile.
“Unfortunately, the scale of the required project development expenditures would require McEwen Mining to issue a massive number of additional shares. This share dilution would not be acceptable,” he continued.
Proceeds from the private placement for up to eight million common shares of McEwen Copper will be used by the company to advance Los Azules to a pre-feasibility study.