Investments by European automaker Stellantis NV and mining giant Rio Tinto Group are giving Rob McEwen’s copper venture more breathing space before going public.
The Canadian entrepreneur now expects to hold an initial public offering for his namesake copper unit in the second half of the year instead of the first half. That’s after Stellantis and a Rio unit each took a 14.2% stake in McEwen Copper, providing enough funding for its Argentine project until next year.
If the high attendance of auto executives at this week’s BMO Capital Markets mining event is any measure, it won’t be the last. The auto industry is stepping up efforts to secure supplies of the materials needed to move away from fossil fuels. General Motors Co. is said to be vying for a stake in Vale SA’s base metals unit as Tesla Inc. weighs a takeover of Sigma Lithium Corp.
In terms of the size of the copper unit’s IPO, McEwen said it will be determined by capital needs and ensuring enough of a free float for liquid trading. He expects the offering to take parent company McEwen Mining Inc.’s holding in the unit below the 50% threshold.