On March 27, 2025, Hudbay Minerals Inc. announced it will acquire Mitsubishi Materials Corporation’s 25 percent interest in Copper Mountain Mine (BC) Ltd., owner of the Copper Mountain mine in British Columbia, for up to US$44.25 million (approximately C$59.5 million at the March 27, 2025 exchange rate of 1.345). The transaction includes an upfront cash payment of US$4.5 million (C$6 million), seven annual deferred payments totaling US$21 million (C$28.2 million), and up to US$18.75 million (C$25.3 million) in contingent payments tied to performance milestones at New Ingerbelle. Additionally, Hudbay will assume full responsibility for CMBC’s obligations, including a 25 percent share of an intercompany loan totaling roughly US$104 million (C$139.9 million).

This acquisition consolidates Hudbay’s ownership of the Copper Mountain mine, aligning with its strategy to expand copper output in stable jurisdictions and streamline ownership. It will also boost Hudbay’s offtake rights from 0 percent to 15 percent for copper concentrate over the next 15 years, after which Hudbay will receive 100% percent. Mitsubishi will maintain an 85 percent offtake position and retain secondees at the mine for five years post-closing.

Citi is serving as Hudbay’s financial advisor. Goodmans LLP is acting as legal counsel to Hudbay, while Mitsubishi Materials is represented by Torys LLP. The transaction was completed on April 30, 2025.