Hudbay Minerals To Merge With Copper Mountain Mining, From Canada's Third Largest Copper Mining Powerhouse.

Hudbay Minerals Inc (NYSE: HBM) disclosed a merger deal with Copper Mountain Mining Corporation (OTC: CPPMF) for $439 million to create a premier Americas-focused copper producer company.

The agreement represents a 23% premium to Copper Mountain shareholders based on Hudbay's and Copper Mountain's 10-day volume-weighted-average share prices as of April 12, 2023.

As per merger terms, each Copper Mountain shareholder will receive 0.381 of a Hudbay common share for each Copper Mountain common share held. Also, the existing Hudbay and Copper Mountain shareholders will own around 76% and 24% of Hudbay, respectively.

The combined company represents Canada's third largest copper producer, based on 2023 estimated copper production. It is expected to produce 150,000 tonnes of copper per year.

The company will have a geographically balanced portfolio in tier-one mining jurisdictions, with around 55% of estimated NAV estimated from North American assets and 45% of estimated NAV from South American assets.

The merger will unlock operating efficiencies and corporate synergies of $30 million per year, accretive to Hudbay.

The deal is expected to close in the late second quarter or by the early third quarter of 2023.

Price Action: HBM shares are trading higher by 2.12% at $5.30 on the last check Thursday.

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This article Hudbay Minerals To Merge With Copper Mountain Mining, From Canada's Third Largest Copper Mining Powerhouse. originally appeared on Benzinga.com

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