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Hudbay Minerals Signs Deal With Marubeni to Advance Canada Exploration

By Robb M. Stewart


Hudbay Minerals said it struck a deal with Japanese trading company Marubeni to raise funding for the copper miner's exploration in Canada.

The Toronto-based company said Wednesday it granted Marubeni's Canadian subsidiary an option to buy a 20% interest in three projects located within trucking distance of the Canadian miner's processing facilities in Flin Flon, Manitoba.

To exercise the option Marubeni will, among other things, fund Hudbay's exploration activities with at least 12 million Canadian dollars ($8.9 million) over about five years. After that the companies will form a joint venture to hold the selected projects with Hudbay, acting as operator, owning an 80% stake and Marubeni holding the remaining 20% interest.

The agreement follows the signing of a memorandum of understanding signed by the companies in July that set out the framework for a multi-year exploration partnership.

Hudbay said exploration work will begin in the summer of 2024 and that a budget of C$7 million has been agreed by both companies for the 2025 winter exploration program. All costs after the joint venture is formed would be funded by the companies, in proportion to their respective stakes, it said.

The company said the agreement focused on the Cuprus-White Lake, Westarm and North Star projects.


Write to Robb M. Stewart at


(END) Dow Jones Newswires

March 13, 2024 07:14 ET (11:14 GMT)

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