Mitsubishi pays $600m for 30% of Hudbay’s Copper World project

Mitsubishi will contribute $420m at closing for a 30% stake in the Arizona copper project and a further $180m within 18 months, and fund its share of future capital. Hudbay said the price implies a large premium to consensus net asset value for the project.

Why it matters. Selling a minority stake in a project to a strategic partner can fund construction and set a price that the market can compare with the parent’s value.

Source

Hudbay Minerals

In the course

Module 7: Funding a project