Hudbay has put pen to paper on buying Vancouver-based mining company Mason Resources.
Hudbay and Mason announced the finalized deal on Dec. 19, with Hudbay purchasing all remaining non-Hudbay owned common shares at a price of 40 cents per share. Mason was valued at $31 million in Oct. 2018.
Hudbay had previously purchased shares in the company, owning about 14 per cent of Mason until announcing an intention to buy the company outright in October.
Through the purchase, Hudbay will gain control of the Ann Mason copper and molybdenum project in Nevada. The project, located about 75 kilometres away from Reno, is considered by Hudbay to be the fourth largest copper porphyry resource in Canada and the United States.
Hudbay will also take over the Blue Hill deposit, a separate copper deposit considered part of the Ann Mason project, and the Lordsburg property, a copper and gold porphyry resource in New Mexico.
“The Ann Mason project meets our stringent acquisition criteria and has the potential to be a long-life, low-cost mine in one of the world’s best jurisdictions for mining, and it is at a stage where we can leverage our management expertise in exploration, engineering, permitting and construction to create value for our shareholders,” Alan Hair, president and CEO of Hudbay, said in a joint press release from Hudbay and Mason.
In addition to its operations in the Flin Flon and Snow Lake areas, Hudbay also owns 80 per cent of the Rosemont open-pit mine in Arizona and fully owns the Constancia copper porphyry project in Peru.