Mentioned:
Faraday Copper is buying a historic copper project from one of the largest mining giants in the world. But, why?
What’s happening:
- Faraday Copper (TSX: FDY) has entered into a definitive agreement with BHP (NYSE: BHP) to acquire their San Manuel copper project located in Arizona
By the numbers:
- Faraday Copper will issue roughly $525M CAD in equity to BHP to acquire their San Manuel property
Why it matters:
- BHP’s San Manuel copper project is widely considered to be one of the most significant underground past producing copper mines in the United States of America
Going deeper:
- BHP will own roughly 30% of Faraday Copper after the successful completion of the sale of their San Manuel property
- Faraday Copper has publicly stated they plan to restart production at the San Manuel property and integrate it with their Copper Creek project which is located roughly 12 miles miles away
The intrigue:
- The Lundin family and a wholly owned subsidiary of BHP previously made waves when they led a $100M CAD equity financing round into Faraday Copper at $4.20 CAD per share
