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McEwen Copper issued four-million common shares at C$10 each. Rob McEwen bought all the shares and has a beneficial interest of 18.6% of McEwen Copper.

Another four-million common shares is available to qualified investors, subject to a C$1-million minimum investment. The second tranche funding should close by the end of September.

The proceeds of the offering would be used to advance McEwen Copper’s Los Azules project, in Argentina, to a prefeasibility study, construction of a new year-round access road to the project, infill and exploration drilling at Los Azules and its Elder Creek project, in Nevada, as well as for environmental permitting and community relations.

McEwen Copper would pursue an initial public listing within 12 months from the final closing of the offering.

Rob McEwen announced the creation of the copper subsidiary earlier this month, believing that a separately listed, copper-focused company would be an attractive investment vehicle.

Assuming completion of the full amount of the offering, McEwen Mining would be the controlling shareholder and own 68.6% of McEwen Copper. The new investors, including Rob McEwen, would own 31.4%.