McEwen Copper Closes $240 Million Loan for Los Azules
The four-year credit, led by Sprott, finances engineering and early works toward a final investment decision in 2027.
McEwen Copper closed on August 27, 2026 a US$240 million four-year senior secured term loan to finance engineering and early works at the Los Azules copper project in the Argentine province of San Juan, according to Bloomberg Línea. The credit, led by Sprott Natural Resource Investment Partners, brings the deposit closer to its final investment decision (FID), scheduled for mid-2027.
Los Azules is one of the largest undeveloped copper projects in the world and has already been approved to enter Argentina's Large Investment Incentive Regime (RIGI). The loan functions as a bridge while McEwen Copper structures a larger-scale debt package for construction, with the FID targeted for mid-2027 and commercial copper cathode production in 2030, according to Diario Financiero. The company notes that the copper price is 50% above its October 2024 financing round level. The closing signals international capital's appetite for critical minerals tied to the energy transition in Latin America.
The loan, announced by McEwen Copper, carries an annual interest rate of 12%, payable monthly, with principal due at maturity. Sprott committed US$112 million; Rob McEwen, chairman and principal shareholder of McEwen Inc., contributes US$85 million, and other lenders add US$43 million. McEwen Inc., listed in New York and Toronto under the symbol MUX, holds 46.3% of McEwen Copper. The 2025-2026 field campaign exceeded 5,600 meters drilled, and engineering for the FID is advancing ahead of schedule: Metso won the process equipment packages (solvent extraction and electrowinning, sulfuric acid, and crushing), and the engineering, procurement, and construction management (EPCM) contractor will be selected in Q4 2026.
The next milestone is the FID and full project financing toward mid-2027. Société Générale has been serving as exclusive financial advisor since May, and the company is evaluating an IPO. The loan does not in itself constitute a construction decision; the central challenge remains closing the larger-scale debt.
This article was written with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.
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This article was drafted with AI assistance from verified sources and reviewed by a human editor before publication.