McEwen Copper Options Elder Creek Project to Rio Tinto
September 06 2022 - 5:00AM
McEwen Copper Inc., a subsidiary of
McEwen
Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to announce
that it has entered into a binding term sheet with Kennecott
Exploration Company (“
KEX”), a subsidiary of
Rio Tinto, for an option to earn a
60% interest in and joint venture the Elder Creek
property in Nevada (see
Figure 1) by spending
US$18 million.
The principal terms of the agreement are:
-
KEX will have the right to earn a 60% interest in Elder
Creek by investing $18 million over a maximum of seven
years (the “Expenditure Commitment”).
-
KEX will be the operator of the Elder Creek
project during the term of the agreement.
-
Following completion of the Expenditure Commitment, KEX and McEwen
Copper will form an unincorporated 60:40 joint venture.
-
Other customary representations, warranties and conditions.
Figure 1 – Elder Creek property location
map
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/bf8ec482-73d8-4bad-bcb0-73ad1a3fa7d1
About McEwen CopperMcEwen
Copper Inc. holds 100% interest in the Los Azules copper project in
San Juan, Argentina and the Elder Creek project in Nevada, USA.
McEwen Mining Inc. (NYSE/TSX: MUX) owns a 68% share of McEwen
Copper.
About Elder CreekThis Project consists of 577
unpatented mining claims in Humboldt and Lander counties, Nevada.
It is prospective for porphyry copper mineralization and well
placed in a district hosting several large copper and gold mines,
including Marigold, Lone Tree and Phoenix. McEwen Mining Inc. holds
a 1.25% net smelter return (NSR) royalty on all the claims that
comprise the Elder Creek property.
About Rio TintoRio Tinto is the second largest
mining and metals company in the world, operating in 35 countries,
and producing the raw materials essential to human progress. It
aims to help pioneer a more sustainable future, from partnering in
the development of technology that can make the aluminum smelting
process entirely free of direct greenhouse gas (GHG) emissions, to
providing the world with the materials it needs – such as copper –
to build a new low-carbon economy and products like electric
vehicles, charging infrastructure and smartphones.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis news release contains certain forward-looking
statements and information, including "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. The forward-looking statements and information expressed,
as at the date of this news release, McEwen Mining Inc.'s (the
"Company") estimates, forecasts, projections, expectations or
beliefs as to future events and results. Forward-looking statements
and information are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by management,
are inherently subject to significant business, economic and
competitive uncertainties, risks and contingencies, and there can
be no assurance that such statements and information will prove to
be accurate. Therefore, actual results and future events could
differ materially from those anticipated in such statements and
information. Risks and uncertainties that could cause results or
future events to differ materially from current expectations
expressed or implied by the forward-looking statements and
information include, but are not limited to, effects of the
COVID-19 pandemic, fluctuations in the market price of precious
metals, mining industry risks, political, economic, social and
security risks associated 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 production 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. The
Company undertakes no obligation to reissue or update
forward-looking statements or information as a result of new
information or events after the date hereof except as may be
required by law. See McEwen Mining's Annual Report on Form 10-K/A
for the fiscal year ended December 31, 2021 and other filings with
the Securities and Exchange Commission, under the caption "Risk
Factors", for additional information on risks, uncertainties and
other factors relating to the forward-looking statements and
information regarding the Company. All forward-looking statements
and information made in this news release are qualified by this
cautionary statement.
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.
WEBSITEwww.mcewenmining.com CONTACT
INFORMATION150 King Street West Suite 2800, P.O. Box
24 Toronto, ON, Canada M5H 1J9 Investor
Relations: (866)-441-0690
Toll-Free (647)-258-0395 Mihaela
Iancu ext. 320 info@mcewenmining.com |
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