Hudbay Minerals to buy struggling Copper Mountain Mining for $439 million – by Gabriel Friedman (Financial Post – April 13, 2023)

The deal shows how much demand for green metals is heating up

Hudbay Minerals Inc. says it will acquire Copper Mountain Mining Co., whose mine in British Columbia cut its output nearly in half last year after a series of challenges.Toronto-based Hudbay’s all-stock deal offers a 23-per-cent premium to Copper Mountain’s 10-day weighted average trading price, and values the company at US$439 million.

It will require approval from two-thirds of Copper Mountain shareholders and a simple majority of Hudbay shareholders, and is expected to close around the middle of 2023.

The deal shows even struggling single-asset copper producers are drawing interest and attracting premiums as demand for green metals heats up during the energy transition.

Hudbay said the combination would create an Americas-focused copper company, with assets in Canada, the United States and Peru. It sees potential to expand Copper Mountain’s production by removing bottlenecks in ore milling and adding other equipment on site.

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