Faraday Copper Company (I ransom-TSX, CPPKF-OTCQX) has signed a definitive acquisition deal BHP Group Limited (BHP-NYSE, BHPLF-OTCPK) San Manuel property in Arizona, a move that creates a multi-asset copper district in the United States.
“This is a transformative acquisition for Faraday,” said Paul Harbidge, Faraday’s president and CEO. “The combination of San Manuel and our (adjacent) Copper Creek project, supported by Lundin Group and BHP as strategic shareholders, positions us well to become one of the largest undeveloped copper plays in the United States, with a path to development and production in the near term.”
Shares of Faraday Copper rose 3.00%, or $0.18, to $6.17 in early trading Thursday. Shares are currently trading in a 52-week range of $6.69 to 88 cents.
Faraday is a well-funded Canadian exploration company with a focus on its Copper Creek Project, which it describes as one of the largest undeveloped copper projects in North America with open pit and bulk mining potential.
The property is located in Pinal County, less than two hours northeast of Tucson, and in the heart of a major northwest-trending belt, which includes known copper mines in the Miami Globe and Rye mining districts, with a major east-northeast-trending copper belt evidenced by the former BHP Kalamazoo mine in San Manuel, Arizona.
The exploration site covers 41 square kilometers and has a rich history of exploration and mining across patented and unpatented claims. Copper Creek hosts several porphyry breccia copper deposits. Two historical mineral resource estimates for copper and molybdenum have been prepared in accordance with Canadian Institute of Mining (CIM) standards, outlining the economic potential for both open pit and underground scenarios.
Total measured and indicated resources (open pit and underground) are 355.1 million tons of 0.50% copper, 0.008% molybdenum and 1.3 g/t silver or 0.53% copper equivalent (CuEq) or 4,126.3 (Mlbs) CuEq).
Under the final agreement, Faraday will acquire 100% ownership of San Manuel. In return, Faraday will issue to BHP common shares equivalent to 30% of Faraday’s issued and outstanding shares on a fully diluted basis on the closing date. Including shares issued to BHP from its participation in a $100 million private placement in March 2026, BHP is expected to own 138 million shares at closing. In addition, BHP will be granted customary investor rights provided it maintains minimum contribution requirements. Closing of the proposed transaction is subject to a vote by a simple majority of votes cast by Faraday shareholders at a meeting in August 2026 and is expected by the end of the third quarter of 2026.
In an overview of the project, Faraday said the San Manuel mine, consisting of the San Manuel and Kalamazoo deposits, operated as a combined underground cavern and open pit mine, generating more than 4.5 million tons of copper between 1955 and 1999.
The joint venture will have the potential to become a multi-generational copper district offering American-made copper, Faraday said.
