Hudbay Minerals and Marubeni sign MOU for Flin Flon exploration partnership

Hudbay Minerals signed a memorandum of understanding – MOU- with Marubeni that establishes the framework for a multi-year exploration partnership focused on the discovery of new deposits within trucking distance of Hudbay’s existing processing facilities in Flin Flon, Manitoba. In connection with the MOU, Hudbay and Marubeni have agreed to negotiate the terms of a definitive agreement to govern the relationship between the parties and the Flin Flon properties that would form the subject of the exploration partnership. It is currently contemplated that Marubeni would be required to fund approximately $10-15M of exploration expenditures on the Project Properties and that Hudbay will act as operator and carry out the exploration activities. The MOU also provides a framework for a future joint venture between the parties if the exploration efforts are successful in discovering new deposits in the Flin Flon region. Marubeni would have the option to acquire a substantial minority equity interest in the projects, allowing the parties to jointly pursue the development of the projects. The final structure of a joint venture between the parties would be determined by the terms of a joint venture agreement.