Hudbay, JOGMEC sign option agreement to expand partnership with Marubeni

Hudbay Minerals (HBM) announce the signing of an amended and restated option agreement with Japan Organization for Metals and Energy Security and Marubeni Corporation, JOGMEC, pursuant to which Hudbay has granted JOGMEC an option to acquire a 10% interest in three projects located within trucking distance of Hudbay’s processing facilities in Flin Flon, Manitoba. In order to exercise the JOGMEC Option, amongst other things, JOGMEC will be required to fund at least C$6 million in exploration expenditures over a period of approximately three years, with Hudbay acting as the operator carrying out the exploration activities. This Agreement is an amendment and restatement of the option agreement Hudbay entered into with Marubeni in March 2024, pursuant to which Marubeni’s wholly-owned Canadian subsidiary was granted an option to acquire a 20% interest in the three projects, provided it, amongst other things, funds at least C$12 million in exploration expenditures over the designated earn-in period. Upon successful completion of both Marubeni’s earn-in obligations and JOGMEC’s earn-in obligations and if both parties elect to exercise their respective Options, a three-party joint-venture will be formed to hold the selected projects with Hudbay, acting as operator, holding a 70% interest, Marubeni holding a 20% interest and JOGMEC holding the remaining 10% interest.