By Robb M. Stewart

 

Mining giant Rio Tinto and automaker Stellantis have boosted their investment in McEwen Mining's copper subsidiary in a move that values the business at roughly $800 million.

Rio Tinto's Nuton venture agreed to an additional $10 million investment that will lift its stake in McEwen Copper to 14.5%. The two part transactions, which is set to close by Oct. 19, will involve a private placement of 152,615 McEwen Copper shares and the purchase of 232,000 shares owned by McEwen Mining in a secondary sale.

McEwen Mining, which will own just under 48% of its subsidiary after the investment closes, will receive about $4 million and McEwen Copper the remaining $6 million, which will be used to develop the Los Azules copper project in Argentina.

Earlier this year, Rio Tinto's Nuton invested a further $30 million in McEwen Copper in a move that raised its stake to about 14% and value the copper company at about $550 million.

McEwen Copper on Wednesday said it also closed an additional investment by Stellantis, the parent of brands including Alfa Romeo, Chrysler, Fiat and Jeep. The automaker bought 1.9 million McEwen Copper shares in a private placement, increasing its ownership to just over 19% from roughly 14% it owned in February.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

October 11, 2023 08:40 ET (12:40 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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