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BHP Group has agreed to transfer its San Manuel property in Arizona to Canada's Faraday Copper Corp in exchange for a 30% equity stake, strengthening its exposure to the Copper Creek copper project. Following the transaction, BHP's total holding in Faraday is expected to increase to around 32.5%, including shares acquired through a private placement earlier this year. The companies believe combining San Manuel's infrastructure with the adjacent Copper Creek project could support investment, job creation and domestic copper production in the United States, subject to technical studies and regulatory approvals.
BHP Group has entered into an agreement to transfer its San Manuel property in Arizona to Canadian mining company Faraday Copper Corp in exchange for a 30% equity stake, as Faraday moves ahead with plans to develop a large copper hub centred on its nearby Copper Creek project.
Following completion of the transaction, BHP is expected to hold about 32.5% of Faraday on a non-diluted basis. This includes shares it acquired through a private placement completed earlier this year. Along with its equity holding, BHP will receive shareholder rights and offtake rights related to the project.
Faraday, which has a market capitalisation of about CAD 1.82 billion (USD 1.28 billion), owns the Copper Creek project located next to the San Manuel property. According to BHP, combining San Manuel's existing infrastructure and mineral inventory with Copper Creek could improve the project's long-term development potential while supporting investment, employment opportunities and domestic copper supply in the United States.
The companies noted that the combined project will still require further technical studies and regulatory approvals before development can move forward.
The agreement builds on BHP's growing investment in the copper sector, which has become a strategic focus for the miner amid rising global demand driven by electrification, renewable energy and electric vehicles. Earlier this year, BHP strengthened its relationship with Faraday by participating in the company's private placement, signalling its long-term interest in the Copper Creek region.
Separately, the Lundin Group, which controls Nemesia, Faraday's largest shareholder, said BHP would join it as a strategic investor in the company. The move brings together two major long-term investors to support the advancement of the Copper Creek project.
Source Reuters
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