Hudbay operates the Snow Lake mine in Manitoba, Canada, and the Constancia mine in Peru, and Copper Mountain operates the Copper Mountain mine in British Columbia, Canada. The combined company would be the third largest copper producer in Canada based on 2023 estimated copper production of more than 150,000 metric tons.

“This transaction represents a unique opportunity to combine complementary assets and leverage our technical expertise to create value for the shareholders of both Hudbay and Copper Mountain,” said Peter Kukielski, Hudbay’s President and CEO. “We estimate that this combination could unlock $30 million per year in operating efficiencies and corporate synergies. With an expanded copper production profile, a low-cost position on the copper curve and an enviable copper growth pipeline, the combined company is expected to generate robust cash flow.”

Each Copper Mountain shareholder will receive 0.381 shares of Hudbay. The transaction consideration represents C$2.67 ($2.00) per Copper Mountain share. Copper Mountain’s and Hudbay’s respective officers and directors have entered into voting support agreements pursuant to which they have agreed, among other things, to vote their shares in favor of the transaction. In addition to shareholder approvals, the transaction is subject to the satisfaction of certain other closing conditions customary in transactions of this nature.