Canadian firm Hudbay Minerals is reportedly in discussions to buy Mantos Copper, a Chilean mining company backed by Audley Capital Advisors and Orion Mine Finance.
Hudbay, which is valued at C$1.6bn, is in advanced talks to acquire Mantos in a deal that is reported to be valued at around C$1bn ($780m), according to Bloomberg.
Mantos is looking for takeover offers in an effort to fund expansion plans for its mines in northern Chile. The company noted that its Mantoverde mine will require a $780m investment to enable it to have average annual production of 106,000 metric tonnes of copper and 33,000oz of gold.
A further $210m is required to proceed with the company’s Mantos Blancos expansion plan, which envisages expanding the mine’s life through to 2035.
The company announced in May this year that it is working with Bank of Nova Scotia to evaluate ‘the full range of strategic alternatives’.
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