Mentioned:
Hudbay Minerals is putting up more than a billion dollars for a copper project in Arizona. But, why?
What’s happening:
- Hudbay Minerals (NYSE: HBM) has entered into an agreement to acquire Arizona Sonoran Copper (TSX: ASCU) in a $1.48B USD all stock deal
By the numbers:
- Hudbay Minerals is paying $9.35 CAD per common share of Arizona Sonoran Copper, which represents a +30% premium to the previous closing price
Why it matters:
- Arizona Sonoran Copper’s flagship asset the Cactus-Parks project is one of the largest copper deposits in the United States and contains roughly 11 billion pounds of copper located on private land near Casa Grande, Arizona
Going deeper:
- Arizona Sonoran Copper’s Cactus-Parks project was previously a full scale producing mine prior to being shut down more than four decades ago
- Hudbay Minerals owned a 9.9% equity stake in Arizona Sonoran Copper prior to the new acquisition
