Hudbay Minerals has filed a joint management information circular for its pending takeover of Canadian miner Copper Mountain Mining Company.

The takeover will see Hudbay acquire all Copper Mountain shares. Based in Canada, Hudbay operates mines globally.

Copper Mountain shareholders will receive 0.381 of a common Hudbay share for each Copper Mountain share purchased.

Copper Mountain shareholders will summarily control 24% of Hudbay shares. Copper Mountainā€™s largest stakeholder, Zeta Resources, who holds 9.96% of its shares, stated its intention to support the buyout.

Hudbay will gain access to Copper Mountainā€™s only site, the Copper Mountain mine in British Columbia. The site will be Hudbayā€™s third active Canadian mine, with several other exploratory titles held. Extracting copper, gold and silver, Copper Mountain opened in 2011 with an expected mine life from 2023 of another 28 years.

The mine produced 15.9 million pounds of copper, 5,616oz of gold and 75,277oz of silver in the first quarter of this year. This was an improvement on all three fronts over Q1 of 2022, generating $100.5m (C$135.48m) of sales. This improvement was the mineā€™s highest production in a quarter since 2021, indicating the potential for a prosperous year at the project.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile ā€“ free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

When citing the strategic rationale of the takeover, Hudbay stated that the Copper Mountain mine would see ā€œan estimated $30m per year of operating efficiencies and corporate synergies, including approximately $20m per year from operating cost reductions through the application of Hudbayā€™s operating efficiency practices to the Copper Mountain mineā€.

Both companies will stage shareholder meetings on 13 June relevant to the deal. The boards of each company have recommended that their respective shareholders approve the transaction at the meetings.