“Los Azules is a unique, long-life, copper mining opportunity in Argentina. Recent acquisitions that include the Las Bambas copper mining project in Peru acquired by Minmetals Group from China and the Taca Taca copper deposit in Argentina acquired by First Quantum Minerals confirm there is significant value to be realized for projects in this region. We are pleased that large-scale, capital intensive projects like Los Azules are attracting attention from global mining companies, increasing our ability to monetize our portion of the asset. In our opinion, McEwen Mining's latest analysis provides a solid base value for the asset,” commented Mr. Kirill Klip, Non-Executive Chairman of TNR.
Kirill Klip.:
TNR Gold Corp. Comments on Recent News by McEwen Mining on the Los Azules Copper Project, Argentina.
Copper M&A in Latin America, TNR Gold And McEwen Mining With Los Azules Copper.
"We have the great news from McEwen Mining, you can Google for the whole news release. Before the value for Los Azules was based on the acquisition price paid by US Gold for Minera Andes. After the collapse in Gold prices and Argentina troubled couple of years this accounting value has became the wishful history. Now based on the valuations of Taca Taca in First Quantum Minerals takeover of Lumina Copper McEwen Mining will make the conservative accounting valuation of Los Azules. Normally the selling price for the assets is above such an assessment. You will have to make your own numbers or contact Jim Mustard at PI Financial, who is acting on behalf of TNR Gold. Read more."
BN Americas:
Taca Taca sale 'very encouraging' for Argentina mining - McEwen
First Quantum Minerals' Cdn$470mn (US$428mn) acquisition of Lumina Copper and its Taca Taca copper deposit are positive signs for mining in Argentina, according to Rob McEwen, CEO of McEwen Mining.
The takeover, expected to close by the end of August, is evidence of renewed market interest in large deposits in the country, McEwen said on the company's Q2 earnings call.
Toronto-based McEwen withdrew its Los Azules copper project in Argentina from sale in June 2013 due to a lack of interest, with the CEO previously warning the project may fetch less than US$200mn due to a depressed market.
Investment in Argentina's mining sector has been affected by import and currency restrictions imposed by President Cristina Fernández's government, as well as spiraling inflation and the strength of the Argentine peso.
Due to Taca Taca's similarities to McEwen's Los Azules copper project in Argentina, the acquisition also helps gain an idea of the latter's value, McEwen said. The company announced a US$98mn impairment charge related to Los Azules in its Q2 results in reaction to the Lumina Copper acquisition.
"The recent sale of Lumina Copper is very encouraging and not only signals that big projects in Argentina are again becoming attractive but it also provides a measure of the value of the Los Azules project," McEwen told the call. "This and other sales suggest Los Azules has a value of approximately US$300mn and represents a source of future liquidity."
McEwen also has an interest in the San José mine in Argentina and mines and projects in Mexico and the US."
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