TNR Gold executive chairman Kirill Klip recently discussed significant advancements in the Los Azules copper project in Argentina, a project in which TNR Gold holds a 0.4% net smelter returns royalty. During an interview with Proactive's Stephen Gunnion, Klip detailed the implications of the $70 million financing round led by McEwen Copper. Notably, Rob McEwen himself invested $5 million, and McEwen Mining added another $14 million to the financing efforts. These contributions follow previous substantial investments by Rio Tinto and Stellantis.
Klip underscored the importance of the project achieving a bankable feasibility study, anticipated in the first quarter of next year. He also highlighted the favorable impact of recent political changes in Argentina, which include pro-reform measures aimed at reducing bureaucratic hurdles and providing tax cuts. These changes are expected to benefit the Los Azules project significantly.
Moreover, Klip mentioned an update from Fundamental Research Corporation that reaffirmed a buy rating for TNR Gold and increased its target price. This optimistic outlook is attributed to the continuous positive developments in the Los Azules project and the improved business climate in Argentina.
Klip also elaborated on potential valuations for TNR Gold's NSR royalty from Los Azules, comparing it to similar industry deals. He emphasized the project's potential to generate substantial royalty revenue, adding another layer of appeal for investors.
These developments mark a pivotal moment for TNR Gold and the Los Azules project, positioning it as a significant player in the copper industry. The financing round and the anticipated benefits from Argentina's political reforms could accelerate the project's progress, potentially leading to robust economic outcomes and enhanced investor confidence.
