Canadian miner Hudbay Minerals has signed a definitive agreement to buy the remaining stake in Arizona Sonoran Copper Company that it does not already own for $1.48 billion. The deal will create a major copper hub in southern Arizona by adding Arizona Sonoran’s Cactus project to Hudbay’s existing operations, including the Copper World project.
“The acquisition of ASCU is a highly compelling transaction that further enhances Hudbay’s copper growth platform in the U.S. Cactus is a high-quality, large‑scale copper development asset in a mining jurisdiction that we know well,” said Peter Kukielski, Hudbay’s president and CEO.
“Together with the advancement of Copper World, this transaction creates one of the most significant copper districts in North America and reinforces Hudbay’s position as a premier copper growth company, while preserving financial flexibility and delivering long‑term value for shareholders.”
Under the terms of the agreement, each Arizona Sonoran shareholder will receive 0.242 of a Hudbay common share for each ASCU common share held, which represents approximately C$9.35 per ASCU common share and a $1,480 million equity value based on Hudbay’s closing share price on the TSX on February 27. Hudbay currently holds a nearly 10% stake in ASCU.
The deal provides a clear pathway to scale Hudbay’s annual copper production from 125,000 tonnes to more than 250,000 tonnes by 2030 with Copper World and other near-term optimization projects, and potential to grow to more than 350,000 tonnes with Cactus.
“Hudbay’s strong balance sheet, proven track record in Arizona, and disciplined approach to project development meaningfully de‑risks the development of Cactus and positions it for long‑term success. I would like to thank our whole team for their tremendous efforts advancing the Cactus project and creating lasting benefits for all stakeholders,” said George Ogilvie, Arizona Sonoran president and CEO.
Subject to the receipt of all necessary regulatory approvals, the transaction is expected to be completed in the second quarter of 2026.
Source: Hudbay Minerals