Date Announced

October 11, 2023

Lead Office

Vancouver

Value

42.00 Billion MXN

On October 10, 2023, FCA Argentina S.A., the Argentine unit of global automaker Stellantis N.V. (“Stellantis”), subscribed for an additional 1,900,000 shares in McEwen Copper Inc. (“McEwen Copper”), for consideration of approximately ARS$42 billion, which will be used to fund the construction of McEwen’s Los Azules copper project in San Juan, Argentina. In connection with its investment, Stellantis was granted a minimum 10,000 tonne per annum copper cathode offtake on the Los Azules project, subject to certain restrictions and exclusions. Upon closing of the transaction, Stellantis holds 6,000,000 shares in McEwen Copper which represents an approximate 19.4% interest in the company.

The Los Azules project was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence (2022). Its current copper resources are estimated at 10.2 billion pounds at a grade of 0.48% Cu (Indicated category) and an additional 19.3 billion pounds at a grade of 0.33% Cu (Inferred category). It is estimated that the Los Azules project will be operational for at least 33 years after the start of production.

Stellantis is a leading automobile and mobility provider, products and services include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, RAM, Vauxhall, Free2Move and Leasys. Stellantis plans to become carbon net zero by 2038. Copper is an essential raw material for vehicle electrification, and mass electrification is a key component of Stellantis’s decarbonization plan. This strategic investment by Stellantis in one of the largest copper projects currently under development for this commodity will secure part of its copper demand from 2027 onwards.

McCarthy Tétrault advised FCA Argentina S.A., the Argentine unit of Stellantis, with a team led by Shawn Doyle that included Peter Quon, Alexandra Comber (Corporate/M&A), Matthew Kraemer, Colton Dennis (Tax), and Michael Caldecott (Competition/Antitrust & Foreign Investment). McCarthy previously advised FCA Argentina S.A. in connection with its initial investment in McEwen Copper earlier this year (as described here https://www.mccarthy.ca/en/work/cases/stellantis-closes-ars30b-investment-mcewen-copper-inc)