Faraday Copper is negotiating the potential acquisition of BHP Group's San Manuel property in Arizona, US, according to a non-binding letter of intent (LoI) signed by both entities.

The proposed transaction involves Faraday obtaining full ownership of the property, while BHP would receive a 30% stake in Faraday's equity, along with shareholder and marketing rights.

Additionally, BHP will participate in Faraday's equity fundraisers, with a cap of $20m over a period of two years.

The LoI outlines mutual objectives to investigate restarting the San Manuel copper mine and establish a new copper hub in Arizona.

This plan aims to integrate the adjacent Copper Creek and San Manuel sites, leveraging existing infrastructure and enhancing capital efficiency.

The redevelopment of the brownfield site at San Manuel, given this ownership framework, offers the opportunity to rapidly introduce new copper units to the market.

Although the LoI is non-binding, it includes provisions for an exclusivity period, financial participation and confidentiality.

Finalising this agreement depends on due diligence, completion of definitive documents and necessary approvals.

BHP chief development officer Catherine Raw said: “BHP looks forward to working with Faraday to create a pathway to bring on additional US copper supply to the market. This would support the US objective of greater copper supply chain resilience, as well as economic development in the Pinal County region.”

The San Manuel mine, operational from 1955 until 1999, was a significant copper producer in the US and reputed to be the largest underground copper mine nationally before its closure.

It was shut down following a prolonged period of low copper prices, although a significant amount of mineral resources remained untapped.

In July 2025, Faraday Copper finalised its previously announced bought deal financing, raising C$48.77m ($35.5m) for Copper Creek Project in Arizona.