A major copper mine in the B.C. interior could be getting a new owner.
Hudbay Minerals Inc. said it has reached an agreement to acquire Copper Mountain Mining Corp., the majority owner of the Copper Mountain mine near Princeton, in a $439 million all-stock deal.
The companies said the merger would create an Americas-focused copper mining company with an operating portfolio of three long-lived mines and a portfolio of copper expansion and development projects.
Under the agreement, Copper Mountain shareholders will receive 0.381 shares of Hudbay stock for each share of Copper Mountain common stock held.
The offer represents a premium of 23 percent, based on the April 12 10-day volume-weighted average share prices of Hudbay’s and Copper Mountain, the companies said.
The transaction requires approval by a two-thirds majority of Copper Mountain shareholders and a simple majority of Hudbay shareholders, and is subject to closing conditions including regulatory and court approvals.
After the deal closes, Hudbay shareholders will own about 76 percent of the combined company, while Copper Mountain shareholders will own 24 percent.
On average, the Copper Mountain mine produces about 100 million pounds of copper equivalent per year, according to its company website.
Hudbay has mining operations in Peru and Manitoba, and copper development projects in Arizona and Nevada.
mining