Taca Taca sale very encouraging for Argentina mining- McEwen
Taca Taca sale very encouraging for Argentina mining - McEwen
BNamericas reported that First Quantum Minerals' CAD 470 million cquisition of Lumina Copper and its Taca Taca copper deposit are positive signs for mining in Argentina.
Mr Rob McEwen CEO of McEwen Mining said that the takeover, expected to close by the end of August, is evidence of renewed market interest in large deposits in the country.
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 USD 200 million due to a depressed market.
Investment in Argentina's mining sector has been affected by import and currency restrictions imposed by President Ms Cristina Fernandez's government, as well as spiraling inflation and the strength of the Argentine peso.
Mr McEwen said that 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. The company announced a USD 98mn impairment charge related to Los Azules in its Q2 results in reaction to the Lumina Copper acquisition.
He said that "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. This and other sales suggest Los Azules has a value of approximately USD 300 million and represents a source of future liquidity."
Source - BNamericas