Copper Mountain mine. Credit: Copper Mountain Mining
Hudbay Minerals (TSX, NYSE: HBM) has consolidated ownership of the Copper Mountain mine in southern British Columbia, a move that aligns with the Canadian miner’s strategy to boost its copper production in North America.
On Thursday, Hudbay said it is acquiring Mitsubishi Materials’ 25% stake in the mine for $44.25 million in cash, of which $4.5 million is paid upfront and $21 million paid in seven equal annual installments. The remaining $18.75 million will consist of five equal payments contingent on certain operating milestones.
Hudbay said it will also assume all of Copper Mountain’s debt, including approximately $104 million in loan obligations from Mitsubishi.
As part of its agreement with Mitsubishi, Hudbay’s proportion of the copper concentrate offtake from the Copper Mountain mine will increase from zero to 15%, while the Japanese…
