Hudbay Minerals and Copper Mountain Mining combining

Hudbay Minerals (HBM) and Copper Mountain Mining (CPPMF) have entered into a definitive agreement pursuant to which Hudbay will acquire all of the issued and outstanding common shares of Copper Mountain, pursuant to a court approved plan of arrangement. All assets in the combined portfolio are located in tier-one jurisdictions of Canada, Peru and the U.S. The combined company represents the third largest copper producer in Canada. Each Copper Mountain shareholder will receive 0.381 of a Hudbay common share for each Copper Mountain common share held. The transaction consideration represents approximately C$2.67 per Copper Mountain common share and a $439M equity value. The transaction consideration represents a 23% premium to Copper Mountain shareholders. Copper Mountain’s and Hudbay’s respective officers and directors have agreed to vote their shares in favor of the transaction. Following the closing, the Board of Hudbay will include two directors from the Board of Copper Mountain, and the management team of Hudbay will include select members from the management team of Copper Mountain. In addition, existing Hudbay and Copper Mountain shareholders will own approximately 76% and 24% of Hudbay, respectively. In light of the transaction, Gil Clausen has postponed his retirement and will remain as CEO of Copper Mountain until closing. The transaction is expected to be completed late in Q2 or early in Q3. Following completion of the Transaction, the shares of Copper Mountain will be de-listed from the Toronto Stock Exchange and the Australian Securities Exchange.