The proceeds from the transaction will be utilised by McEwen Copper to advance the development of the Los Azules copper project as well as for general corporate purposes


Stellantis invests $155m in McEwen Copper. (Credit: PublicDomainPictures from Pixabay)

Dutch automotive company Stellantis has made an investment of $155m to acquire a 14.2% equity stake in McEwen Copper, a subsidiary of Canadian mining company McEwen Mining.

McEwen Copper owns the Los Azules copper project in San Juan, Argentina and the Elder Creek project in Nevada, US.

The two-part transaction involved a private placement of 2.85 million common shares and the purchase of 1.25 million common shares indirectly owned by McEwen Mining in a secondary sale.

According to McEwen Mining, the proceeds from the transaction will be utilised to advance the development of the Los Azules copper project as well as for general corporate purposes.

The Los Azules project is expected to produce 100,000 tons of cathode copper per year at 99.9% purity beginning in 2027. The resources at the project can secure the operation for a minimum of 33 years, said Stellantis.

Stellantis CEO Carlos Tavares said: “Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 – a goal that requires innovation and a complete redefinition of the entire business.

“We are taking important steps in Argentina and Brazil, with the aim of decarbonizing mobility and ensuring strategic supplies of raw materials necessary for the success of the Company’s global electrification plans.”

Both parties have also signed a copper cathodes and concentrates purchase rights agreement. Under this, Stellantis can exercise an option to offtake a percentage of the produced copper cathodes or copper concentrates or both from the Los Azules project.

McEwen Copper CEO Rob McEwen said: “We are delighted to have Stellantis as a partner in the future development of our Los Azules copper project.

“Together, we share a vision to build a mine for the future based on regenerative principles that can achieve net-zero carbon emissions by 2038.

“We are committed to delivering green copper to Argentina and the world, a product that will contribute to the electrification of transportation and the protection of our atmosphere.”

Separately, McEwen Copper has signed a binding agreement for an additional investment of $30m from Nuton, a Rio Tinto Venture. Nuton will increase its stake in McEwen Copper to 14.2% following the closing of the transaction, while McEwen Mining will hold a stake of 51.9%.