Oct 20 2014
McEwen Mining Inc. is pleased to announce that it has entered into a transaction with TNR Gold Corp. ("TNR") (and certain of its subsidiaries) whereby TNR's back-in right for up to 25% of the equity in certain portions of the Los Azules Copper Project ("Los Azules"), has been terminated.
"The termination of the back-in right removes a legal uncertainty over a contingent ownership interest in the project. Now, we own an uncontested 100% interest in Los Azules. We believe this transaction will make this large asset more attractive and marketable to potential joint venture partners and investors. The recent purchase of another large copper project in Argentina for more than $400 million is most encouraging. It suggests a positive change in market sentiment regarding Argentina is occurring. Both large copper producers looking for sources of future copper production growth and some big name investors appear prepared to once again invest in Argentina," said Rob McEwen, Chief Owner.
Los Azules is a large, high-grade, open pit copper project. At a cut-off grade of 0.35% Cu, Los Azules contains a resource of 5.4 billion pounds in the indicated category (389 million tonnes at 0.64% Cu) and 14.3 billion pounds in the inferred category (1,397 million tonnes at 0.46% Cu).
Los Azules is an advanced-stage porphyry copper exploration project located in San Juan Province, Argentina near the border with Chile. The border region between Chile and Argentina is home to some of the world's largest porphyry copper projects, including Lumina Copper Corp.'s Taca Taca Project which was recently bought by First Quantum Minerals Ltd. for approximately $428 million.
In exchange for the termination of the back-in right, TNR will receive a 0.4% net smelter royalty on Los Azules, 850,000 shares of McEwen Mining and, if McEwen Mining sells all of its interest in the project within thirty-six months of closing the transaction, a bonus payment equal to 1% of the gross proceeds will be paid to TNR.
ABOUT MCEWEN MINING
The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by creating a profitable gold producer focused in the Americas. McEwen Mining's principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest); the El Gallo complex in Sinaloa, Mexico; the Gold Bar project in Nevada, US; the Los Azules project in San Juan, Argentina. McEwen Mining has 298,269,879 shares issued and outstanding (including exchangeable shares). Rob McEwen, Chief Owner, Chairman and CEO owns 25% of the shares of the Company.
TECHNICAL INFORMATION
This news release has been reviewed and approved by Luke Willis, PGeo, Director - Resource Modeling, who is a Qualified Person as defined by National Instrument 43-101 ("NI 43-101").
For additional information about the Los Azules Copper Project see the technical report titled "Technical Report Los Azules Porphyry Copper Project, San Juan Province, Argentina", with an effective date of August 1, 2013, prepared by Richard Kunter, FAusIMM, CP, QP, Robert Sim, PGeo, Bruce M. Davis, PhD, FAusIMM, James K. Duff, PGeo, William L. Rose, PE, Scott C. Elfen, PE, and Steven A. Pozder, PE, MBA, all of whom are qualified persons and all of whom but James K. Duff are considered independent of McEwen Mining, as defined by Canadian National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101").
Source: http://www.mcewenmining.com/