The funds will be allocated to engineering and early works at the San Juan project. The company is targeting a Final Investment Decision and full project financing by mid-2027, while maintaining 2030 as its target for the start of commercial copper cathode production.
By Panorama Minero
McEwen Copper has secured a US$240 million senior secured loan that will allow the company to continue advancing engineering and early works at Los Azules, one of the leading copper projects under development in San Juan Province.
The four-year financing was provided by a syndicate of lenders comprising Sprott Natural Resource Investment Partners, with US$112 million; Rob McEwen, Chairman and largest shareholder of McEwen Inc., with US$85 million; and other lenders providing US$43 million.
The funds will be allocated to the advancement of Los Azules and for general corporate purposes, while McEwen Copper works on structuring a larger-scale financing package for the development of the project.
The company continues to target a Final Investment Decision (FID) and completion of full project financing by mid-2027. The start of commercial copper cathode production is planned for 2030, subject to securing financing and the corresponding sectoral approvals.
As part of this process, Société Générale was appointed in May 2026 as exclusive financial advisor to structure the debt financing for Los Azules. In parallel, preparations are continuing for a potential initial public offering (IPO) of McEwen Copper.
“This financing reflects our lenders’ confidence in Los Azules and in the progress Argentina has made over the past two and a half years. President Javier Milei’s initiatives have helped Argentina become an increasingly attractive destination for large-scale foreign investment. Economic stabilization, improving credit ratings, declining country risk and RIGI are driving the return of long-term capital to the country. San Juan continues to demonstrate the conditions of a reliable mining jurisdiction, supported by strong institutions, rigorous processes and sound governance. We are proud to be developing Los Azules here,” said Michael Meding, General Manager of McEwen Copper.
Financing Terms
The loan will bear interest at a rate of 12% per annum, payable monthly, will have a four-year term, and the principal will be repayable at maturity.
McEwen Copper may repay all or part of the loan before maturity by paying the outstanding principal, accrued interest and a fee equal to 5% of the outstanding principal.
As part of the transaction, the lenders also received 15,000 warrants to purchase McEwen Copper common shares for each US$1 million of principal advanced. The instruments will have a five-year term and an exercise price of US$40 per share.
Los Azules Advances toward a Final Investment Decision
In parallel with the financial structuring, McEwen Copper continues to advance the technical work required to move Los Azules toward a Final Investment Decision.
The 2025-2026 field campaign concluded with more than 5,600 metres of drilling. According to the company, geotechnical results were better than expected and will allow the open-pit design to be optimized as mine planning progresses.
Sterilization drilling also confirmed the suitability of the proposed site for the northeast rock storage facility.
Engineering required to reach the FID is progressing ahead of schedule. The main process equipment packages—solvent extraction/electrowinning, sulphuric acid and crushing—were awarded to Metso, while the tender for the mining fleet is in the final stage of evaluation.
McEwen Copper also expects to select the EPCM contractor during the fourth quarter of 2026.
Employment and Community Relations
During the peak activity period of the most recent field season, Los Azules employed more than 500 people, nearly 90% of whom were hired in San Juan.
The company also reported that household surveys conducted in communities near the project show levels of trust and acceptance above 90%.
In terms of community development, McEwen Copper stated that the programs implemented have provided technical skills training to nearly 2,000 residents of Calingasta. In addition, a community partnerships program has been established to finance productive and social initiatives, as well as irrigation infrastructure works.
A Season Marked by Heavy Snowfall
Los Azules experienced one of the most intense snowfall seasons of the past two decades this winter. Against this backdrop, returning to the site and managing water from snowmelt will require particular attention.
McEwen Copper stated that it is prepared to support the response led by the Government of San Juan and local communities by providing heavy machinery and works aimed at water management.
At the same time, the company noted that snowmelt could help restore levels in hydroelectric reservoirs and support aquifer recharge after several years of drought in a region affected by a prolonged period of water scarcity.
According to McEwen Copper, the Los Azules team has decades of experience working in the high Andes and managing snow events of this nature.
