TNR Gold NSR Royalty Update - Los Azules Copper, Gold and Silver Project: McEwen Copper Announces an Additional US$35 Million Investment by Nuton, a Rio Tinto Venture
NEWS RELEASE
TNR Gold NSR Royalty Update - Los Azules Copper, Gold and
Silver Project: McEwen Copper Announces an Additional US$35
Million Investment by Nuton, a Rio Tinto Venture
Vancouver, British Columbia – October 28, 2024: TNR Gold Corp. (TSX-V: TNR) (“TNR”, “TNR Gold”
or the “Company”) is pleased to announce that McEwen Mining Inc. (“McEwen Mining”) has provided
an update on the Los Azules copper, gold and silver project in San Juan, Argentina. TNR holds a 0.4%
net smelter returns royalty (“NSR Royalty”) (of which 0.04% of the 0.4% NSR Royalty is held on behalf
of a shareholder) on the Los Azules Copper Project. The Los Azules project is held by McEwen Copper
Inc. (“McEwen Copper”), a subsidiary of McEwen Mining.
The news release issued by McEwen Mining on October 24, 2024, stated:
“McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is
pleased to announce closing of an additional $35 million investment by Nuton LLC , a
Rio Tinto Venture.
McEwen Copper previously announced a non -brokered private placement financing of up
to 2,333,333 common shares at a subscription price of US$30.00 per common share, for gross
proceeds of up to US$70 million (the "Offering"). The first tranche of the Offering was led by a
$14 million investment by McEwen Mining and a $5 million investment by Rob McEwen.
In this second tranche of the Offering, Nuton (a Rio Tinto Venture) has purchased an additional
1,166,666 common shares of McEwen Copper for $35 million and two other investors have
acquired 66,669 common shares for $2 million. Following the closing of this second tranche of
the Offering, McEwen Copper has raised a total of $56 million.
Nuton now owns 17.2% of McEwen Copper on a fully diluted basis. Following these share
issuances, McEwen Copper will have 32,804,284 common shares outstanding, giving it a post-
money market value of $984 million, and its shareholders are: McEwen Mining Inc. 46.4%,
Stellantis 18.3%, Nuton 17.2%, Rob McEwen 12.7%, Victor Smorgon Group 3.0%, and other
shareholders 2.0%.
Proceeds from the Offering will be used to advance ongoing work on the feasibility study for
the Los Azules copper project, which is scheduled for publication in the first half of 2025.
Subscription for the remaining 466,664 common shares in the Offering is available to qualified
accredited investors, subject to a US$1 million minimum investment and certain other
conditions. The securities sold in the Offering are private and subject to t ransfer restrictions
until such time when they become listed on a public exchange.
#1120, 789 West Pender Street,
Vancouver, B.C.
V6C 1H2, Canada
T: +1 (604) 229-8129
E-mail: [email protected]
Website: http://www.tnrgoldcorp.com
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This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Nuton
Nuton is an innovative venture that aims to help grow Rio Tinto’s copper business. At the core
of Nuton is a portfolio of proprietary copper leaching related technologies and capability – a
product of almost 30 years of research and development. Nuton offe rs the potential to
economically unlock copper from primary sulfide resources through leaching, achieving
market-leading recovery rates and contributing to an increase in copper production at new and
ongoing operations. One of the key differentiators of Nu ton is the ambition to produce the
world’s lowest footprint copper while having at least one Positive Impact at each of our
deployment sites, across our five pillars: water, energy, land, materials and society.
About McEwen Copper
McEwen Copper Inc. holds a 100% interest in the Los Azules copper project in San Juan,
Argentina and the Elder Creek copper/gold project in Nevada, USA.
Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by
Mining Intelligence (2022). A PEA published in June 2023 for the project estimated a $2.7
billion after-tax NPV8% at $3.75/lb Cu, a 27 -year mine life, and an updated co pper resource
of 10.9 billion pounds at grade 0.40% Cu (Indicated category) and an additional 26.7
billion pounds at grade 0.31% Cu (Inferred category). For more details about the Los Azules
PEA, refer to the McEwen Mining website.
The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or
accuracy of the contents of this news release, which has been prepared by management of
McEwen Mining Inc.
About McEwen Mining
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and
Argentina. In addition, it owns approximately 46.4% of McEwen Copper which owns the large,
advanced stage Los Azules copper project in Argentina. The Company’s goal is to improve the
productivity and life of its assets with the objective of increasing its share price and providing
a yield. Rob McEwen, Chairman and Chief Owner, has personally invested $225 million in the
companies and takes an annual salary of $1.”
“We are pleased that significant developments on the advancement of the Los Azules Copper Project
towards feasibility have led to the increased Rio Tinto and Stellantis holdings in McEwen Copper as
strategic partners of this large copper, gold and silver project. In 2023, Stellantis invested an aggregate
ARS $72 billion. An additional US $100 million in McEwen Copper was invested by Rio Tinto's Venture
Nuton in total,” stated Kirill Klip, TNR’s Chief Executive Officer. “TNR Gold's vision is aligned with the
leaders of innovation among automakers like Stellantis, whose aim is decarbonizing mobility, and mining
industry leaders such as Rob McEwen, whose vision is ‘to build a mine for the future, based on
regenerative principles that can achieve net zero carbon emissions by 2038’.
“The green energy rEVolution relies on the supply of critical metals like copper; delivering "green copper"
to Argentina and the world will contribute to the clean energy transition and electrification of transportation
and energy industries.
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“The new president of Argentina has introduced important government policies aimed at supporting
business and unlocking the country’s economic potential. Mining is being recognized as an integral part
of this economic development plan, providing jobs and enriching local communities.
“Strong team performance of McEwen Copper is advancing the Los Azules Project towards a feasibility
study. The Los Azules Project PEA results highlight the potential to create a robust leach project while
reducing the environmental footprint, and greater environmental and social stewardship sets the project
apart from other potential mine developments.
“It’s also encouraging to see an updated independent mineral resource estimate that has increased the
resource significantly. I nfill drilling during the 2023-24 season upgraded the resource categories,
validated the geological model and confirmed the high-grade zone. Resource drilling for the Los Azules
Feasibility Study is now complete, and the study appears to be on track for delivery in early 2025.
“Together with Nuton, McEwen Copper is exploring new technologies that save energy, water, time and
capital, advancing Los Azules towards the goal of leading environmental performance. The involvement
of Rio Tinto, with its innovative technology, may also accelerate realizing the enormous potential of the
Los Azules Project.
“Los Azules was ranked in the top ten largest undeveloped copper deposits in the world by Mining
Intelligence (2022). TNR Gold does not have to contribute any capital for the development of the Los
Azules Project. The essence of our business model is to have industry leaders like McEwen Mining as
operators on the projects that will potentially generate royalty cashflows to contribute significant value for
our shareholders.”
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become the green energy metals royalty and gold company.
Our business model provides a unique entry point in the creation of supply chains for critical materials
like energy metals that are powering the energy rEVolution, and the gold industry that is providing a
hedge for this stage of the economic cycle.
Our portfolio provides a unique combination of assets with exposure to multiple aspects of the mining
cycle: the power of blue-sky discovery and important partnerships with industry leaders as operators on
the projects that have the potential to generate royalty cashflows that will contribute significant value for
our shareholders.
Over the past twenty-eight years, TNR, through its lead generator business model, has been successful
in generating high -quality global exploration projects. With the Company’s expertise, resources and
industry network, the potential of the Mariana Lithium Project and Los Azules Copper Project in Argentina
among many others have been recognized.
TNR holds a 1.5% NSR Royalty on the Mariana Lithium Project in Argentina, of which 0.15% NSR royalty
is held on behalf of a shareholder. Ganfeng Lithium’s subsidiary, Litio Minera Argentina (“LMA”), has the
right to repurchase 1.0% of the NSR royalty on the Mariana Project, of which 0.9% is the Company’s
NSR Royalty interest. The Company would receive CAN$900,000 and its shareholder would receive
CAN$100,000 on the repurchase by LMA, resulting in TNR holding a 0.45% NSR royalty and its
shareholder holding a 0.05% NSR royalty.
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The Mariana Lithium Project is 100% owned by Ganfeng Lithium. The Mariana Lithium Project has been
approved by the Argentina provincial government of Salta for an environmental impact report, and the
construction of a 20,000 tons-per-annum lithium chloride plant has commenced.
TNR Gold also holds a 0.4% NSR Royalty on the Los Azules Copper Project, of which 0.04% of the 0.4%
NSR royalty is held on behalf of a shareholder . The Los Azules Copper Project is being developed by
McEwen Mining.
TNR also holds a 7% net profits royalty holding on the Batidero I and II properties of the Josemaria Project
that is being developed by Lundin Mining. Lundin Mining is part of the Lundin Group, a portfolio of
companies producing a variety of commodities in several countries worldwide.
TNR provides significant exposure to gold through its 90% holding in the Shotgun Gold porphyry project
in Alaska. The project is located in Southwestern Alaska near the Donlin Gold project, which is being
developed by Barrick Gold and Novagold Resources. T he Company’s strategy with the Shotgun Gold
Project is to attract a joint venture partnership with a major gold mining company. The Company is
actively introducing the project to interested parties.
At its core, TNR provides a wide scope of exposure to gold, copper, silver and lithium through its holdings
in Alaska (the Shotgun Gold porphyry project) and royalty holdings in Argentina (the Mariana Lithium
project, the Los Azules Copper Project and the Batidero I & II properties of the Josemaria Project), and
is committed to the continued generation of in -demand projects, while diversifying its markets and
building shareholder value.
On behalf of the Board of Directors,
Kirill Klip
Executive Chairman
www.tnrgoldcorp.com
For further information concerning this news release please contact Kirill Klip +1 604-229-8129
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain “forward -looking information”
within the meaning of applicable securities law. Forward -looking information is frequently characterized
by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “will”, “could” and
other similar words, or statements that certain events or conditions “may” or “could” occur, although not
all forward-looking statements contain these identifying words. Specifically, forward -looking statements
in this news release include, but are not limited to, statements made in relation to: TNR’s corporate
objectives, and future potential transactions being considered by the Special Committee and the Board.
Such forward-looking information is based on a number of assumptions and subject to a variety of risks
and uncertainties, including but not limited to tho se discussed in the sections entitled “Risks” and
“Forward-Looking Statements” in the Company’s interim and annual Management’s Discussion and
Analysis which are available under the Company’s SEDAR+ profile on www.sedarplus.ca. While
management believes that the assumptions made and reflected in this news release are reasonable,
should one or more of the risks, uncertainties or other factors materialize, or should underlying
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assumptions prove incorrect, actual results may vary materially from those described in forward-looking
information. In particular, there can be no assurance that: TNR will enter into one or more strategic
transactions, partnership or a spin-out, or be able to complete any further royalty acquisitions or sales of
royalty interests, or portions thereof; debt or equity financings will be available to TNR; or that TNR will
be able to achieve any of its corporate objectives. Actual results and future events in respect of the
Company’s NSR’s could differ materially from those anticipated in such forward-looking statements and
information. Risks and uncertainties that could cause results or future events to differ materially fro m
current expectations expressed or implied by the forward-looking statements and information include, but
are not limited to, fluctuations in the market price of precious metals, mining industry risks, political,
economic, social and security risks associ ated with foreign operations, the ability of the corporation to
receive or receive in a timely manner permits or other approvals required in connection with operations,
risks associated with the construction of mining operations and commencement of product ion and the
projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and
hazards, uncertainty as to calculation of mineral resources and reserves, and other risks. Readers should
not place undue reliance on forward-looking statements or information included herein, which speak only
as of the date hereof. TNR relies on the confirmation of its ownership for mining claims from the
appropriate government agencies when paying rental payments for such mining claims requested by
these agencies. There could be a risk in the future of the changing internal policies of such gover nment
agencies or risk related to the third parties , in future, challenging the ownership of such mining claims.
Given these uncertainties, readers are cautioned that forward-looking statements included herein are not
guarantees of future performance, and such forward-looking statements should not be unduly relied on.
In formulating the forward-looking statements contained herein, management has assumed that business
and economic conditions affecting TNR and its royalty partners, McEwen Mining Inc. , Ganfeng Lithium
and Lundin Mining will continue substantially in the ordinary course, including without limitation with
respect to general industry conditions, general levels of economic activity and regulations. These
assumptions, although considered reasonable by management at the time of preparation, may prove to
be incorrect.
Forward-looking information herein and all subsequent written and oral forward -looking information are
based on estimates and opinions of management on the dates they are made and are expressly qualified
in their entirety by this cautionary statement. Exce pt as required by law, the Company assumes no
obligation to update forward -looking information should circumstances or management’s estimates or
opinions change.