In an exciting development, mining giant Rio Tinto and automaker Stellantis have bolstered their investment in McEwen Mining's esteemed copper subsidiary. This move has resulted in a substantial valuation of the business, reaching approximately $800 million.
Rio Tinto's Nuton Venture Takes the Lead
Rio Tinto's Nuton venture has made a commendable additional investment of $10 million, thereby increasing its stake in McEwen Copper to 14.5%. This transaction will be comprised of two parts and is scheduled to conclude by October 19. The first part will involve a private placement of 152,615 McEwen Copper shares, while the second part consists of the acquisition of 232,000 shares from McEwen Mining in a secondary sale.
Promising Prospects for McEwen Mining
Following the completion of the investment, McEwen Mining will hold just under 48% ownership in its subsidiary, allowing it to retain a significant share. In return, McEwen Mining will receive an impressive sum of approximately $4 million. The remaining $6 million will be directed towards the development of the highly promising Los Azules copper project in Argentina.
Rio Tinto's Previous Investment Sets the Stage
Earlier this year, Rio Tinto's Nuton injects an additional $30 million into McEwen Copper. This strategic move raised their stake to about 14% and valued the copper company at an impressive $550 million. This earlier investment highlights the confidence placed by Rio Tinto in McEwen Copper's potential.
Stellantis' Growing Interest
In an interesting turn of events, McEwen Copper has also received an increased investment from Stellantis. Stellantis, known for being the parent company of prestigious brands such as Alfa Romeo, Chrysler, Fiat, and Jeep, purchased 1.9 million McEwen Copper shares through a private placement. This acquisition has resulted in Stellantis now owning just over 19% of McEwen Copper, a significant increase from its previous ownership percentage of approximately 14% back in February.
For further inquiries, contact Robb M. Stewart.