The buyout of the Similkameen Valley’s Copper Mountain Mine is one step closer to reality after the largest shareholders gave their approval.
The mine is currently in the process of being bought out by Hudbay Minerals for US$439 million or C$593 million. The deal would create the third-largest copper-producing company in Canada based on three long-life mines.
According to its corporate website, the Copper Mountain Mine produces approximately 100 million pounds of copper equivalent on average per year.
The announcement on May 18 came after the boards of both companies, along with their largest shareholders in Zeta Resources and GMT Capital, all voted to go forward with the deal. The deal also has received the approval of Copper Mountain Mine’s 25 per cent minority owner, the Mitsubishi Materials Corporation.
“We fully support the combination of Hudbay and Copper Mountain. We have long respected the operating expertise of Hudbay and are excited to further our relationship as joint venture partners,” said Katsuyoshi Isaji, managing executive officer and president of the metals branch of the Mitsubishi Materials Corporation in a press release.
Following the major shareholders approval, the next step will be to get approval from the remainder of each company’s shareholders at special meetings on June 13.
Once the transaction is complete, Hudbay shareholders will own about 76 per cent of the combined company, while Copper Mountain shareholders will hold 24 per cent.
The final steps will include court approval of the purchase, and regulatory approval under the Canadian Competition Act.
All of those additional steps aside, the deal is currently expected to become effective in late June.