Australian miner BHP Group ASX:BHP has agreed to transfer its San Manuel property in Arizona to Faraday Copper Corp TSX:FDY in exchange for a 30% stake in the Canadian miner, as Faraday seeks to develop a copper hub around its adjacent Copper Creek project.

Here are some details:

  • After the completion of the deal, BHP would receive shareholder and offtake rights alongside its stake in Faraday, according to a statement on Thursday.

  • BHP's total holding in Faraday is expected to rise to about 32.5% on a non-diluted basis, including shares acquired through a private placement in March.

  • Faraday has a market capitalisation of around C$1.82 billion ($1.28 billion), as per LSEG data.

  • BHP said combining San Manuel's infrastructure and mineral inventory with the adjacent Copper Creek project could help advance investment, employment and domestic U.S. copper supply.

  • The project remains subject to further technical studies and regulatory approvals, BHP said.

  • Separately, Lundin Group, which controls Nemesia, Faraday's largest shareholder, said BHP would join it as a strategic investor in Faraday.

    ($1 = 1.4181 Canadian dollars)