Business
Hudbay Consolidates 100% Ownership in its Copper Mountain Mine
Increases Hudbay's exposure to a long-life, high-quality copper asset in Canada, a tier-1 mining ...
About this update from Hudbay Minerals Inc
[{"type":"text","content":"Hudbay Consolidates 100% Ownership in its Copper Mountain Mine\n\n\n\n\n\n Increases Hudbay's exposure to a long-life, high-quality copper asset in Canada, a tier-1 mining jurisdiction\n \n\n\n\n Low upfront and deferred cash consideration in a transaction which is accretive to Hudbay’s net asset value per share\n \n\n\n\n Copper Mountain is expected to produce 60,000 tonnes\n \n\n\n i\n \n\n\n of copper by 2027, a greater than 125% increase over 2024 and a 200% increase from 2024 production levels attributable to Hudbay\n \n\n\n\n Increases Hudbay's attributable copper production from Canada and reinforces its position as the second largest copper producer in Canada\n \n\n\n ii\n \n\n\n\n\n Hudbay intends to further invest in Canada's copper and critical minerals sector through the ongoing optimization program at Copper Mountain and the advancement of the nearby New Ingerbelle expansion project\n \n\n\n\n Hudbay gains rights to 15% of the copper concentrate offtake for the next 15 years and 100% thereafter\n \n\n\n\n TORONTO, March 27, 2025 (GLOBE NEWSWIRE) --\n \n Hudbay Minerals Inc. (“Hudbay” or the “company”) (\n \n\n TSX, NYSE: HBM)\n \n is pleased to announce that it has entered into an agreement with Mitsubishi Materials Corporation (\n \n “MMC”\n \n ) to acquire MMC’s 25% interest in Copper Mountain Mine (BC) Ltd. (“\n \n CMBC\n \n ”), the 100% owner of the Copper Mountain mine, for US$4.5 million in an upfront cash payment and up to US$39.75 million in deferred and contingent cash payments (the\n \n “Transaction”\n \n ). In addition, Hudbay will be solely responsible to settle any of CMBC’s outstanding obligations, including an intercompany loan owing to Hudbay, of which 25% represents approximately US$104 million\n \n iii\n \n .\n \n\n “This Transaction is aligned with our strategy of growing copper production in mining friendly jurisdictions and further strengthens Hudbay’s position as a North American copper champion. The Copper Mountain mine is a key asset for Hudbay and we have been encouraged by the progress of our three-year optimization plan. This Transaction simplifies the ownership structure of Copper Mountain and provides Hudbay with greater exposure to the mine without adversely impacting our balance she...