TNR Gold Corp. (TSXV: TNR; FRA: TNW; OTC: TRRXF) says the Los Azules copper project in Argentina is moving closer to a final investment decision as operator McEwen Copper advances engineering and financing.
McEwen Copper, a subsidiary of McEwen Mining (TSX, NYSE: MUX), had completed about 27% of its planned FID work program as of June 30 and aims to finish the remainder in the fourth quarter. TNR holds a 0.4% net smelter returns royalty on the project.
Work includes engineering for processing facilities, mining fleet evaluations, power supply assessments and contractor selection, alongside construction of an access road and site camp.
“The collaboration between McEwen Copper and International Finance Corporation (IFC), and admission to the Argentina Regime of Incentives for Investment (RIGI) could move the Los Azules copper project development closer to a construction decision,” TNR CEO Kirill Klip said.
Copper scale
A 2025 feasibility study outlined average production of 205,000 tonnes of copper cathodes annually during the first five years, with C1 cash costs of $1.71 perpounds over an initial 22-year mine life.
McEwen’s chairman Rob McEwen said in an interview with MINING.COM earlier this year that the Los Azules project is already supported by a feasibility study placing it in the second lowest quartile of the global cost curve.
He said this positions it as a large, financeable asset the company is advancing toward development. He added the project is targeting first production by 2030 and remains in the development and financing stage.
McEwen added that Los Azules is designed to produce copper cathode rather than concentrate, allowing it to bypass smelters and supply metal directly to end users.
The project could operate for another 33 years under a preliminary Nuton case.
TNR’s royalty provides exposure to that potential production without requiring the company to contribute capital toward development.
Financing push
McEwen Copper appointed Société Générale as exclusive financial adviser for project debt financing and has begun preparations for a potential initial public offering. It is also reviewing an enhanced financing proposal from a European export credit agency.
Construction is targeted for early 2027 and production for 2030, subject to financing and approvals.
TNR also holds royalty interests in Argentine and Alaskan assets including the Mariana lithium, Josemaría and Shotgun Gold projects.
