Hudbay Minerals To Buy Mitsubishi Materials's 25% Stake In Copper Mountain Mine (BC) Ltd.

(RTTNews) - Hudbay Minerals Inc.(HBM) Thursday said it has agreed to buy Mitsubishi Materials' (MMC) 25 percent interest in Copper Mountain Mine (BC) Ltd. (CMBC), the 100 percent owner of the Copper Mountain mine.

The purchase consideration consists of an upfront payment of $4.5 million, $21 million in seven annual payments of $3 million each commencing on 12 months after the closing of the transaction, and up to $18.75 million in five additional contingent payments of $3.75 million each.

Additionally, Hudbay will be responsible for CMBCs outstanding debts, including an intercompany loan owing to Hudbay, of which 25 percent represents about $104 million.

Copper Mountain is expected to produce 60,000 tonnes of copper by 2027, more than 125 percent increase over 2024 and a 200 percent increase from 2024 production levels attributable to Hudbay.

"This Transaction is aligned with our strategy of growing copper production in mining friendly jurisdictions and further strengthens Hudbays 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 sheet," said Peter Kukielski, Hudbays President and Chief Executive Officer.