- McEwen (MUX) has signed an agreement for a US$30 million investment by Nuton, a Rio Tinto Venture
- Nuton agreed to invest US$30 million to acquire shares of McEwen Copper in a two-part transaction expected to close no later than March 10, 2023
- Nuton is a new venture that aims to help grow Rio Tinto’s copper business
- McEwen Mining Inc. is a mining and minerals production and exploration company
- McEwen Mining Inc. (MUX) opened trading at C$7.43 per share
McEwen (MUX) has signed a binding agreement for an additional US$30 million investment by Nuton, a Rio Tinto Venture.
McEwen Copper Inc., a subsidiary of McEwen Mining Inc., signed the agreement with Nuton LLC, which is an existing McEwen Copper shareholder.
Nuton agreed to invest US$30 million to acquire shares of McEwen Copper in a two-part transaction expected to close no later than March 10, 2023.
The transaction consists of a private placement of 350,000 McEwen Copper common shares as well as the purchase of 1,250,000 common shares owned by McEwen Mining in a secondary sale.
Proceeds of the subscription and purchase are expected to be approximately US$6.5 million to McEwen Copper and US$23.5 million to McEwen Mining, respectively.
The proceeds of the private placement will be used to advance the development of the Los Azules copper project in San Juan, Argentina, and for general corporate purposes
Upon closing, Nuton will own 14.2 per cent of McEwen Copper on a fully diluted basis, and McEwen Mining will own 51.9 per cent.
The transaction values McEwen Copper at approximately US$550 million.
“We are extremely pleased to have Nuton’s strong continued participation in McEwen Copper,” noted McEwen Copper Chief Executive Rob McEwen.
“Together, we are exploring new technologies that save energy, water, time and capital in the pursuit of delivering green copper to Argentina and the world, a product that will contribute to the electrification of transportation and the protection of our atmosphere,” he added.
In connection with the transaction, McEwen Copper and certain of its affiliates signed an Amended Collaboration Agreement and a Copper Cathodes and Concentrates Purchase Rights Agreement (the CCCPRA).
A highlight of the new Nuton collaboration agreement includes that Nuton will have the opportunity to provide local currency funding, in certain circumstances, for the advancement of the Los Azules project.
Nuton is a new venture that aims to help grow Rio Tinto’s copper business.
Rio Tinto is the second-largest mining and metals company in the world, operating in 35 countries and producing the raw materials essential to human progress.
McEwen Mining Inc. is a mining and minerals production and exploration company focused on precious and base minerals in Argentina, Mexico, and the United States.
McEwen Mining Inc. (MUX) opened trading at C$7.43 per share.