TNR Gold Corp. (TSXV: TNR) has issued a royalty update confirming that McEwen Copper Inc. has closed a US$240 million senior secured term loan facility to advance the Los Azules copper project in San Juan, Argentina — a project on which TNR holds a 0.4% net smelter returns royalty. The financing, announced by McEwen Inc. on August 27, 2026, is intended to fund ongoing engineering and early works as the project moves toward a final investment decision targeted for mid-2027. Investors in TNR Gold may be watching this development closely, as progress at Los Azules has direct implications for the company's royalty portfolio.

Key Points

  • TNR Gold Corp. (TSXV: TNR) holds a 0.4% NSR royalty on the Los Azules copper, gold and silver project in Argentina
  • McEwen Copper has closed a US$240 million, four-year senior secured term loan at 12.0% per annum interest to fund Los Azules engineering and early works
  • A final investment decision is targeted for mid-2027; commercial copper cathode production is targeted for 2030, subject to financing and approvals
  • TNR Gold is debt-free and reports a 775% total shareholder return over five years, per the company's disclosure

McEwen Copper's US$240 Million Term Loan and Los Azules Financing Structure

McEwen Copper closed the US$240 million facility with a syndicate including Sprott Natural Resource Investment Partners for US$112 million, McEwen Chairman Rob McEwen for US$85 million, and other lenders contributing US$43 million. The term loan carries interest at 12.0% per annum, payable monthly, with principal due at maturity after four years. Lenders also received 15,000 five-year McEwen Copper common share purchase warrants per US$1 million of principal at an exercise price of US$40 per share. The release states this financing bridges the project while broader debt financing is arranged, with Societe Generale appointed sole financial advisor for that process in May 2026.

Los Azules Project Engineering and Field Campaign Progress

According to the McEwen update referenced in TNR's announcement, the 2025-2026 field campaign at Los Azules completed more than 5,600 metres of drilling. Geotechnical results exceeded expectations and are expected to improve open pit design, while condemnation drilling confirmed the planned location for the North-East rock storage facility. Engineering for key process equipment packages covering solvent extraction, electrowinning, sulfuric acid, and crushing has been awarded to Metso. Selection of an EPCM contractor is expected by the fourth quarter of 2026, and the release states that engineering for the final investment decision is ahead of plan.

TNR Gold's Royalty Position and Broader Portfolio Context

TNR Gold holds a 0.4% NSR royalty on Los Azules, of which 0.04% is held on behalf of a shareholder. The company does not contribute capital toward Los Azules development, a structure central to its royalty business model. Beyond Los Azules, TNR's portfolio includes a 1.5% NSR royalty on the Mariana Lithium project in Argentina, a 7% net profits royalty on the Batidero I and II properties at the Josemaria project, and a 90% interest in the Shotgun Gold project in Alaska. The company states it is debt-free and has attracted Altius Minerals as a major royalty investor.