TNR Gold's Los Azules Copper Project Nears Final Investment Decision
TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) has confirmed that the Los Azules copper initiative in Argentina is moving closer to a definitive investment resolution, with significant progress made by its operating partner.
McEwen Copper Inc. has reported completing nearly a third of the required activities for the final investment decision by June 30, with the rest anticipated to be finished in the last quarter of the year. TNR maintains a 0.4% net smelter returns royalty on this venture, which is under the ownership of McEwen Copper, itself partially owned by McEwen Mining. The ongoing work involves crucial engineering tasks for the SX/EW and sulfuric acid plants, a thorough review of mining equipment, evaluation of power supply options, and selection of an EPCM contractor. Additionally, essential infrastructure such as an access road and site camp are under construction, complementing comprehensive geotechnical and hydrogeological drilling campaigns.
The 2025 feasibility study highlighted the project's potential, estimating an average yearly output of 205,000 tonnes of copper cathodes for 22 years, with a competitive C1 cash cost of $1.71 per pound. There's also an exciting prospect of extending operations by another 33 years. McEwen holds a 1.25% NSR royalty, projected to yield substantial pre-tax cash flow over the initial two decades. With Société Générale appointed as the financial advisor for debt financing and plans for a possible initial public offering, the project is also assessing an enhanced financing proposal from a European export credit agency. Construction is slated for early 2027, with production commencing in 2030, pending financial closures and necessary approvals. TNR Gold, holding various royalty interests across Argentine and Alaskan properties, including the Mariana Lithium Project and the Shotgun Gold porphyry project, is not required to inject capital into the Los Azules development.
The advancements at the Los Azules copper project represent a significant stride towards enhancing the global supply of crucial metals essential for the burgeoning green energy transformation. The collaboration between McEwen Copper and the International Finance Corporation, coupled with admission to Argentina's Regime of Incentives for Investment, underscores a promising future. This initiative is poised to deliver 'green copper' to both Argentina and the international community, thereby playing a pivotal role in accelerating the shift to clean energy and fostering the electrification of transportation and industrial sectors. Such developments are vital for a sustainable future, driving economic growth while addressing environmental imperatives through responsible resource management and technological innovation.
