BHP Group (ASX:BHP) struck a definitive deal to sell its San Manuel property in Arizona, US, to Faraday Copper in return for a 30% stake in Faraday at closing on a fully diluted basis, the companies said in separate statements late Thursday.
The property comprises the legacy San Manuel copper mine, including the San Manuel and Kalamazoo deposits, a plant site, and closed tailings storage facilities, as well as the Black Hills quarry, the Camp Grant quarry, and related rights and assets.
In addition to the Faraday stake, BHP will also receive certain shareholder and offtake rights, and will have the right to participate in future equity raises by Faraday.
BHP is expected to hold 138 million Faraday common shares after the deal's closing, representing a 32.5% stake on a non-diluted basis, including shares it acquired through a private placement in March.
Faraday plans to develop a new copper hub in Arizona by combining infrastructure and mineral inventory at San Manuel with its adjacent Copper Creek project.
The transaction is expected to close by the end of the third quarter, subject to approval by regulators and Faraday shareholders.