Hudbay has reached an agreement with United Copper and Moly to purchase their 7.95 percent interest in the Rosemont Project in Arizona and to terminate all of UCM’s remaining earn-in and off-take rights for upfront cash consideration of 45 million dollars plus three annual installments of 10 million per year starting on July 1st, 2022. Hudbay has agreed to release UCM from any and all obligations in relation to the Rosemont Project including project loans representing its proportionate share to joint venture expenditures incurred beyond its initial earn-in investment. UCM is jointly owned by Korea Resources Corporation and LG International Corporation.
Hudbay intends to evaluate a variety of options including the addition of a new committed joint venture partner for the development of Rosemont. They expect to carry out this process in parallel with advancing the initial development of the Project with the objective to ultimately hold an approximate 70 percent interest in the project and maintain operatorship.
