Canadian miner Hyudbay Minerals has announced a $13-million transaction to buy exploration firm Rockcliff Metals, which is its joint venture partner on the Talbot project and also owns six additional deposits in Manitoba's Snow Lake region.
Under the arrangement, Rockcliff shareholders will receive 0.006776 of a Hudbay common share for each Rockcliff common share held, representing an attractive premium to Rockcliff’s recent trading price.
Hudbay president and CEO Peter Kukielski said the acquisition would consolidate its ownership in the Talbot copper/gold deposit and more than triple its prospective land package in the Snow Lake region.
The Talbot deposit and the additional Rockcliff satellite deposits will provide further optionality and potential future feed sources for Hudbay’s Stall and New Britannia mills.
Rockcliff is one of the biggest landholders in the Snow Lake area with about 1 800 km2 across all its properties.
“As a junior explorer, it is a fitting result to be able to complete a transaction with a producer such as Hudbay. It is also a testament to the work completed and prospectivity of our assets that one day these deposits may become mines in the camp,” commented Rockcliff interim president, CEO and director Ken Lapierre.
Rockcliff has measured and indicated mineral resources of 7.9-million tonnes grading 3.60% copper equivalent and inferred mineral resources of 5.1-million tonnes grading 3.19% copper equivalent.
Hudbay's operational focus in Canada is shifting to the Snow Lake region as its reserves, processing capacity and exploration activities expand in the region, setting the stage for a new phase of growth.
Its Lalor gold/zinc/copper/silver mine in Snow Lake is a meaningful low-cost gold producer that substantially benefited from the refurbishment of the New Britannia mill in 2021.
Hudbay has been actively conducting surface and underground drilling activities in the Snow Lake area.