Strategic Move: Los Azules Seeks Investment Incentive Approval

Los Azules Aims for Large Investment Incentive Regime Approval

TORONTO, news release — McEwen Copper Inc., a key subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is excited to announce plans for admitting its Los Azules copper project into Argentina's Large Investment Incentive Regime (RIGI). This initiative marks a significant step toward enhancing the project's financial viability and operational efficiency.

Investment Overview for the Los Azules Project

The Los Azules Project requires an estimated investment of USD 2.7 billion. So far, USD 227 million has been allocated under the RIGI to support essential activities like feasibility studies, exploration, and preparatory work needed to get the project ready for construction. An additional USD 2.5 billion investment is projected for building the mine and associated production facilities.

Benefits of the RIGI for Los Azules

Upon gaining approval for admission to the RIGI, the Los Azules project will benefit from several financial incentives. These include a reduced corporate income tax rate from 35% to 25%, exemptions from value-added tax during the construction phase, and waivers on export duties. Furthermore, the project will enjoy the freedom to retain export proceeds outside the country for a continuous period of 30 years, ensuring stability and access to international arbitration in the event of any disputes.

Leadership Insights on the Initiative

Robert McEwen, the Chairman and Chief Owner of McEwen Mining, articulated his enthusiasm: "Argentina is once again open for business. The introduction of the RIGI provides both stability and incentives for large-scale infrastructure investments. Recent developments in Argentina's mining sector underscore a broader commitment to elevating the standard of living for local communities, while simultaneously delivering reasonable returns for our investors."

Furthermore, Michael Meding, Vice-President and General Manager of McEwen Copper, acknowledged the significance of Los Azules, highlighting its ranking among the world's top 10 copper projects. He noted: "The recent approval of the environmental permit for construction is a vital milestone. The RIGI opens doors to capital investments that will facilitate the necessary infrastructure projects, including Los Azules."

Looking Ahead: Feasibility and Construction Plans

With the environmental impact assessment (EIA) approved and the feasibility study set for completion in the initial half of 2025, the Los Azules project is on track to commence construction in early 2026. This timeline is not just a significant milestone for McEwen Copper but also positions the project as a central contributor to sustainable mining practices and economic development in the region.

About McEwen Mining Inc.

McEwen Mining Inc. is an established entity in gold and silver production with active operations across Nevada, Canada, Mexico, and Argentina. The company holds a significant 46.4% stake in McEwen Copper, which is focused on developing the ambitious Los Azules copper project. McEwen Copper is working towards establishing Los Azules as Argentina's first regenerative copper mine.

Commitment to Investors and Market Performance

The overarching goal of McEwen Mining is to enhance its operational productivity while extending the longevity of its assets. The company's efforts aim to increase shareholder value and dividends. Notably, Rob McEwen, the company's Chairman and Chief Owner, has personally invested USD 225 million in its operations, reflecting his confidence in its future growth and profitability.

About McEwen Copper Inc.

McEwen Copper holds complete ownership of the Los Azules copper project and the Elder Creek copper/gold project located in Nevada. Los Azules has been recognized as one of the largest undeveloped copper deposits globally, according to Mining Intelligence. The project has been engineered to utilize substantially less water, emit significantly lower carbon emissions, and aims to achieve carbon neutrality by 2038, powered entirely by renewable energy.

A recently published Preliminary Economic Assessment (PEA) underscores a projected after-tax NPV of USD 2.7 billion, based on a copper price of USD 3.75 per pound. The planned mine life is expected to extend to 27 years, with a copper resource estimate of 10.9 billion pounds at a grade of 0.40% Cu in the indicated category, alongside an inferred resource of an additional 26.7 billion pounds at a grade of 0.31% Cu.

Frequently Asked Questions

What is the Los Azules project?

The Los Azules project is a major copper mining initiative developed by McEwen Copper, requiring significant investment and aiming for sustainable mining practices.

What are the main benefits of the RIGI?

The RIGI offers incentives such as reduced corporate tax rates, exemptions from certain taxes during construction, and extended terms for exports.

What is the projected investment amount for Los Azules?

The total required investment for the Los Azules project is estimated at USD 2.7 billion, with various stages planned for future development.

Who leads McEwen Mining and Copper?

Robert McEwen serves as the Chairman and Chief Owner of McEwen Mining, while Michael Meding oversees McEwen Copper and the Los Azules project.

How does Los Azules contribute to the local economy?

The Los Azules project is expected to drive economic growth in the region by creating jobs, providing infrastructure, and fostering sustainable practices.

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