Mitsubishi Materials sale of 25% interest in Copper Mountain Mine

On April 30, 2025, Mitsubishi Materials Corporation (“MMC”) completed the sale of its 25% interest in Copper Mountain Mine (BC) Ltd., the 100% owner of the Copper Mountain mine, to Hudbay Minerals Inc. (“Hudbay”). As a result of the transaction, Hudbay now owns 100% of the mine.

The Copper Mountain mine is an open pit copper mine located in the Similkameen Valley of southern British Columbia, which also produces gold and silver as by-product metals.

Cash consideration for the transaction includes:

• an initial US$4.5 million upfront cash payment made to MMC at closing;
• US$21.0 million in seven annual deferred payments of US$3.0 million each, which commence on the 12-month anniversary of the transaction’s closing date; and
• up to US$18.75 million in five additional contingent payments of US$3.75 million each, payable in the years following the nearby New Ingerbelle expansion project achieving certain minimum annual operating thresholds. MMC’s right to the contingent payments concludes on the 15-year anniversary of the transaction’s closing.

Also, upon closing, Hudbay’s proportion of the copper concentrate offtake from the Copper Mountain mine will increase from 0% to 15% until the 15-year anniversary of the closing, with MMC continuing as an 85% offtake partner. Following the 15-year anniversary, Hudbay will be entitled to 100% of the copper concentrate offtake. MMC secondees will also continue to contribute to Copper Mountain for a period of five years.

Further information can be found on Globe Newswire’s website.