Faraday Copper and a BHP subsidiary have signed a non-binding letter of intent to explore a potential transaction whereby Faraday would acquire BHP’s San Manuel property in Arizona.
In exchange, BHP would receive a 30% interest in the equity of Faraday, and commensurate shareholder and marketing rights. Additionally, BHP agreed to participate in any equity raise by Faraday, over two years, up to a maximum aggregated subscription amount of US$20 million.
“BHP looks forward to working with Faraday to create a pathway to bring on additional U.S. copper supply to the market. This would support the U.S. objective of greater copper supply chain resilience, as well as economic development in the Pinal County region,” said BHP Chief Development Officer Catherine Raw.
The LOI provides the basis through which BHP and Faraday will explore pathways for the restart of the San Manuel copper mine and development of a new copper hub in Arizona. Consolidated development of the adjacent Copper Creek and San Manuel properties would benefit from neighboring land positions, existing infrastructure at San Manuel, and enhanced capital efficiency.
Operating from 1955–1999, San Manuel was one of the most significant copper producers nationally and the largest underground copper mine in the U.S. at the time of closure.
Source: BHP