Canada’s Hudbay Minerals (TSX, NYSE: HBM) has struck a $600-million deal with Mitsubishi that hands the Japanese conglomerate a 30% stake in its fully permitted Copper World project in Arizona.
The agreement, announced on Wednesday, secures a long-term partner for Hudbay and sharply reduces its upfront funding needs. Mitsubishi will pay $420 million at closing and an additional $180 million within 18 months.
The company will also fund its pro-rata share of future capital costs, deferring Hudbay’s first capital contribution until at least 2028 and trimming its expected outlay to about $200 million based on prefeasibility study (PFS) estimates.
“Securing Mitsubishi as a 30% partner in Copper World is an important milestone for Hudbay as we establish a long-term strategic partnership to advance this high-quality copper project towards sanctioning and to unlock significant value in our copper growth…
