McEwen Copper Taps Lenders, US Federal Agencies for US$4 Billion Argentine Mine

McEwen Copper, a subsidiary of McEwen Mining (TSX:MUX,NYSE:MUX), is in negotiations with global lenders and United States federal agencies to secure US$4 billion for its Los Azules project in Argentina.

The developer is targeting a capital structure comprising 30 to 40 percent equity, with debt covering the remainder, to fundUS $3.2 billion in capital expenditures and project costs.

According to an interview with Managing Director Michael Meding cited by Bloomberg, the company is engaging multiple export-credit agencies, notably the US Export-Import Bank (Ex-Im), to anchor the debt facility. He also confirmed he met last month in New York with officials from both Ex-Im and the US International Development Finance (DFC).

Both agencies are central to the Trump administration’s critical minerals strategy, which seeks to shield US manufacturers from supply shocks and curb reliance on Chinese supply chains.

Ex-Im is currently mandated to deploy US$10 billion in financing for President Donald Trump’s "Project Vault," an initiative to procure and store key metals for US automakers, technology companies, and industrial users.

Sourcing US-manufactured mining equipment, such as heavy haul trucks, could unlock Ex-Im backing. Export-credit agencies have already signaled a willingness to finance as much as 85 percent of equipment costs, according to the company. Discussions currently remain at an early stage.

International interest extends beyond Washington, bolstered by a recent US-Argentina bilateral framework prioritizing access to copper. Meding noted that talks are also underway with financial groups from Europe and Japan. A Japanese delegation recently toured the Los Azules site, located in the Andes near the Chilean border.

On the equity side, McEwen Copper is currently interviewing advisers with the goal of raising US$300 million or more through an initial public offering, according to Rob McEwen, chairman and CEO of top shareholder McEwen Mining.

The company has evaluated a public listing since at least 2023. The timeline was previously delayed after strategic investments from automaker Stellantis NV (NYSE:STLA) and Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) venture Nuton provided the developer with greater financial flexibility.

The project’s timeline has accelerated under Argentine President Javier Milei. In September, Los Azules was approved for tax incentives under the government's Large Investment Incentive Regime, a cornerstone policy designed to attract foreign capital. A feasibility study was completed the following month.

Argentina has not recorded commercial copper production since 2018. Los Azules is positioned to alter that trajectory, featuring a projected 22-year mine life with the potential to extend to 33 years.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.