Canadian explorer Copper Mountain Mining (ASX:C6C) has received approval from the Supreme Court of British Columbia for a plan of arrangement to merge with Hudbay Minerals (NYSE:HBM).
Under this arrangement, which was first flagged by the companies in April 2023, Hudbay will acquire all of the issued and outstanding common shares in Copper Mountain in a scrip-for-scrip deal. Each Copper Mountain shareholder will receive 0.381 of a Hudbay share for each Copper Mountain share held.
This values each Copper Mountain share at CAD$2.67 and ascribes Copper Mountain an equity value of US$439 million based on Hudbay’s closing price on 12 April 2023. Additionally, the transaction consideration represents a 23% premium to Copper Mountain shares based on both companies’ 10-day volume weighted average share price (VWAP) on 12 April 2023.
Copper Mountain says the Toronto Stock Exchange (TSX) has conditionally approved the listing of Hudbay common shares to be issued in connection with the transaction, and the requisite regulatory approval for the transaction under the Competition Act (Canada) has also been obtained.
Hudbay reports shareholders of both parties have approved the applicable resolution to give effect to the transaction. The company estimates the effective date of the transaction will occur on or around 20 June 2023.
Once the transaction is complete, the combined company will be the third-largest copper producer in Canada
Once the transaction is complete, the combined company will be the third-largest copper producer in Canada, with the ability to produce more than 150,000 tonnes of copper per annum across 3 ‘long-life’ operating mines and 3 ‘large-scale’ development projects.
Copper Mountain Mining is an ASX-listed Canadian copper explorer that owns 75% of the Copper Mountain Mine near Princeton in British Columbia, Canada. The Copper Mountain Mine produces about 100 million pounds of copper equivalent per annum.
Hudbay Minerals is a diversified mining company listed on the Toronto and New York stock exchanges. The company’s portfolio of projects in North and South America includes the Constancia Operations in Peru and the Snow Lake Operations in Manitoba, Canada. In the US, the company holds the Copper World Project in Arizona and the Mason Project in Nevada.
Write to Harry Mulholland at Mining.com.au
Images: Copper Mountain Mining Corporation
