|
BHP Group Ltd on Friday said it has signed a letter of intent with Faraday Copper Corp to explore a potential sale of BHP’s San Manuel property in Arizona, US. The Melbourne, Australia-based diversified miner said in exchange, from Faraday it would receive a 30% interest in the firm’s equity, and commensurate shareholder and marketing rights. BHP has also agreed to participate in any equity raise by Faraday for a two-year period, up to a maximum subscription amount of $20 million. The firm said the letter of intent provides the basis on which the two companies will ‘explore pathways for the restart of the San Manuel copper mine and development of a new copper hub in Arizona’. The agreement is non-binding, other than an exclusivity period, financing participation and confidentiality provisions. Completion of the proposed transaction is subject to final due diligence, agreement of definitive documentation and customary approvals. The San Manuel mine operated from 1955 to 1999 and was one of the most significant copper producers nationally, BHP said. The mine was closed after a period of sustained low copper prices. A significant mineral inventory remained after closure in 1999, BHP added. ‘BHP looks forward to working with Faraday to create a pathway to bring on additional US copper supply to the market. This would support the US objective of greater copper supply chain resilience, as well as economic development in the Pinal County region,’ said BHP Chief Development Officer Catherine Raw. Shares in BHP closed up 1.4% at 2,786.00 pence on Friday in London and finished 2.4% higher in Johannesburg at R 604.00. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
