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Hudbay Minerals (New York Stock Exchange: HBM) +5.8% in early trading on Wednesday after saying Japanese trading house Marubeni agreed to invest up to C$12 million (~$8.9 million) in exploration activities at three of the miner's projects.
Hudbay (HBM) said Marubeni's Canadian subsidiary will have the option to acquire a 20% interest in three projects located a short distance from the miner's processing facilities in Flin Flon, Manitoba.
Upon successful completion of Marubeni's earn-out obligations, the companies will form a joint venture to maintain the selected projects with Hudbay (HBM), acting as operator, holding an 80% stake and Marubeni holding the remaining 20%, following a memorandum of understanding. The companies signed an agreement in July that sets the framework for a multi-year exploration partnership.
Hudbay (HBM) said the deal focuses on its Cuprus-White Lake, Westarm and North Star projects, all within a 20 kilometer radius of its Flin Flon grinding complex.
