Hudbay Minerals has entered into a joint venture agreement with Mitsubishi Corporation that will see Mitsubishi acquire a 30% stake in Copper World, a wholly-owned subsidiary of Hudbay, for $600 million.
This deal facilitates a $1.5 billion investment in the U.S. critical minerals supply chain, with Copper World expected to deliver 85,000 tonnes of copper annually for 20 years once in production.
Located in Pima County, Arizona, Copper World is one of the highest-grade open pit copper projects in the Americas with proven and probable mineral reserves of 385 million tonnes at 0.54% copper.
The transaction includes $420 million as up-front consideration for a 30% equity interest in Copper World at closing and $180 million within 18 months of closing.
The S&C team is led by Sergio Galvis and Benjamin Kent, along with Estefania Souza, Michael Fronk and Marko Zerunyan. Eric Wang is advising on tax matters. Heather Coleman is advising on executive compensation matters. RuiHui (Rachel) Yu is advising on intellectual property matters. Christopher Mann, Eric Kadel, Jr. and Manon Scales are advising on regulatory matters. Matthew Brennan is advising on environmental matters. Juan Rodriguez is advising on global competition & foreign direct investment matters.