Faraday Copper (TSX:FDY) is conducting a non-brokered private placement of up to around C$1 million ($1.03 million) from strategic and other investors including Lundin Family Trusts and BHP (ASX:BHP).
Under the offering, up to 23.81 million shares will be issued at C$4.20. The placement will close on or about 11 March 2026, subject to regulatory approval.
The funds will be used to advance the company’s copper projects in Arizona, as well as the expenses in relation to a previously reported deal to acquire the San Manuel Project.
Last week, Faraday entered into a non-binding letter of intent with BHP’s subsidiary to acquire San Manuel. Both companies will negotiate and enter into a definitive purchase and sale agreement whereby Faraday will acquire the project, subject to obtaining necessary approvals.
Faraday intends to issue BHP shares equivalent to a 30% interest in the company.
BHP will also be granted customary investor rights provided it maintains a minimum shareholding requirement. BHP has also agreed to – for a 24-month period following executing the letter of intent – to subscribe for 30% of any Faraday equity raise, up to a maximum of US$20 million ($28.4 million) over the financing participation term.
The San Manuel Mine comprises the San Manuel and Kalamazoo deposits and operates as a combined underground block cave and open-pit mine. The mine generated more than 4.5 million tonnes of copper between 1955 and 1999.
Faraday Copper is a mineral explorer focused primarily on its flagship Copper Creek Project in Arizona. Copper Creek is a 3km-long porphyry copper deposit located in Pinal County, less than two hours northeast of Tucson, Arizona.
Write to Aaliyah Rogan at Mining.com.au
Images: Faraday Copper
