Pecoy Copper Announces C$49.8 Million Strategic Financing Led by Hudbay Minerals

Pecoy Copper Corp. announced a non-brokered private placement of 24,676,525 common shares at C$2.02 per share, generating gross proceeds of approximately C$49.8 million. Hudbay Minerals subscribed for 14,914,100 shares, representing approximately C$30.1 million, while an unnamed strategic investor purchased 9,762,425 shares for approximately C$19.7 million. The issue price reflects a 10% premium to the 10-day volume-weighted average price on the TSXV as of October 30, 2026.

Upon closing, each investor is expected to hold approximately 9.99% of the company on a partially diluted basis. Hudbay will enter into an Investor Rights Agreement that includes participation and top-up rights up to 9.99%, as well as the right to nominate one director, or two if the board consists of ten or more directors. Net proceeds from the offering will fund ongoing drilling, resource definition and expansion, geological and metallurgical studies, technical work for a planned updated mineral resource estimate, and general corporate purposes.

The transaction is expected to close on or about November 5, 2026, subject to customary conditions and TSXV acceptance. The shares will be subject to a statutory hold period. The strategic investor was not identified in the release, which serves as a financing announcement ahead of future catalysts including the updated resource estimate, Phase 2 metallurgy, and a preliminary economic assessment.

Hudbay Minerals has taken a 9.99% partially diluted stake in Pecoy Copper Corp. (PCU), marking the major copper producer’s first strategic position in the explorer. Hudbay is paying C$2.02 per share, a figure above the C$1.82 last close and representing a 10% premium to the 10-day VWAP. The deal includes negotiated board nomination and anti-dilution rights.

The investment follows a series of operational milestones for Pecoy. In November 2025, the company secured permits and community agreements, announcing its first drill program since 2016. Drilling restarted at South Breccia in December 2025. By January 2026, Pecoy outlined a program of up to 40,000 m at Pecoy plus approximately 5,000 m at Tororume, with five target areas and five rigs planned at peak.

During February and April 2026, Pecoy reported kilometre-scale South Breccia intercepts, including 1,014 m at 0.37% Cu and 1,020.5 m at 0.43% Cu, extending mineralization below the resource pit shell. In May 2026, a Phase 1 metallurgical review indicated materially higher gold recovery, rising from historical levels of approximately 40–43% to approximately 73% in South Breccia, alongside potential molybdenum credits. While positive, the study requires Phase 2 validation.

By September 2026, four rigs were active with more than 16,000 m drilled. New results from South Breccia and Northwest included 42.3 m at 1.01% Cu near surface, as well as a large untested MTP-01 target. In November 2026, Hudbay and a second strategic investor funded the next phase, taking board-level exposure.

The current 2026 Pecoy program is described as approximately 35,000 m, a reduction from earlier language of “up to 40,000 m.” The financing provides C$49.8 million gross, roughly 13% of Pecoy’s pre-deal market value of approximately C$381 million. The funds are designated for exploration, resource work, and technical studies rather than construction. The deal introduces approximately 10.5% dilution on a post-deal basic share count. Pecoy’s equity story continues to depend on converting the 865 Mt inferred resource into a larger, better-defined, and ultimately economic deposit.

Pecoy Copper Corp. (PCU) is advancing its Pecoy copper-gold-molybdenum-silver project and the Tororume project, which together cover approximately 19,800 hectares in southern Peru’s Arequipa region. The flagship Pecoy project is a large, undeveloped porphyry system situated at approximately 1,650 m elevation, with access to infrastructure, power, water, and Pacific ports.

The company’s resource data and operational details are as follows:

• Inferred resource: 865 Mt at 0.34% Cu, containing approximately 6.451 billion pounds of copper, plus gold, silver and molybdenum credits.
• Resource effective date: April 30, 2025. Cut-off grade: 0.23% Cu within a Whittle pit shell.
• The resource was defined by 121 historical drill holes totaling 48,576 m from 2009–2016, with average drill spacing of about 120 m and depth to about 400 m.
• Current 2026 program: approximately 35,000 m planned, with more than 16,000 m drilled by September 2026.
• Tororume has no mineral resource estimate. It has a radiometric footprint about three times Pecoy’s and historical drilling of 3,933 m.
• Ownership is described as 100% consolidated. Surface rights are held by the Campesino communities of Arirahua (79.8%) and Ispacas (20.2%) over the original Pecoy concessions.
• No royalty burden is disclosed in the provided materials. The project is not in production and has no revenue.
• Management: Vincent Metcalfe, President and CEO; Vincent Cardin-Tremblay, Chief Geological Officer; Annie Dutil, CFO; Paul Matysek, Chairman.
• No analyst coverage or target range is provided in the materials. No consensus can be stated.