Rio Tinto venture Nuton will invest another $10-million in McEwen Copper, a subsidiary of McEwen Mining.
Nuton, which is an existing McEwen Copper shareholder, will up its interest in a two-part transaction consisting of a private placement of 152 615 common shares and the purchase of 232 000 common shares owned by McEwen Mining in a secondary sale.
The transaction is expected to close by October 19.
Proceeds of the subscription and purchase are expected to be about $4-million to McEwen Copper and $6-million to McEwen Mining, respectively.
McEwen says the proceeds of the private placement will be used to advance the development of the Los Azules copper project, Argentina, and for general corporate purposes.
After closing, Nuton will own 14.5% of McEwen Copper on a fully diluted basis, and McEwen Mining will own 47.7%.
The transaction values McEwen Copper at about $800-million.
