Hudbay cited global economic conditions and other capital commitments on its key development projects as the reason for suspension.
Aquila Resources holds 49% interest in the project while Hudbay owns a 51% equity interest.
The Back Forty Project is an advanced stage exploration project delineating a zinc and gold-rich volcanogenic massive sulphide deposit.
Aquila Resources president and CEO Tom Quigley said the company has made good progress over the years advancing the Back Forty Project towards a producing mine.
"In light of Hudbay’s decision, we will evaluate a range of options and opportunities available to us to continue advancing the project and strengthening our position in the Great Lakes region," said Quigley.
"The Back Forty Project is in the final phases of permit preparation and remains a highly prospective development prospect with significant potential for additional growth, and we will work with Hudbay to consider strategic alternatives that are in the best interests of our shareholders, other stakeholders, and the Back Forty Project."
The exploration alliance between Hudbay and Aquila now be terminated and Aquila will maintain a 100% interest in the four strategic alliance properties under evaluation.