Hudbay Completes Acquisition of Arizona Sonoran to Create the Third Largest Copper District in North America

Executive Summary

• Hudbay Minerals has completed the acquisition of Arizona Sonoran Copper Company Inc. via a court-approved plan of arrangement, making Arizona Sonoran a wholly-owned subsidiary.
• The transaction is structured as a share exchange, with former Arizona Sonoran shareholders receiving 0.242 Hudbay common shares for each share held.
• The acquisition strategically combines the Copper World and Cactus projects to form one of North America’s largest copper districts, targeting a production scale-up to over 350,000 tonnes of copper annually by the mid-2030s.

Key Details

• Transaction Structure: Court-approved plan of arrangement to acquire all issued and outstanding common shares of Arizona Sonoran Copper Company Inc. not already owned by Hudbay.
• Exchange Ratio/Consideration: 0.242 Hudbay common shares for each Arizona Sonoran common share held immediately prior to the effective time (applies to options, RSUs, and DSUs as well).
• District Scale & Production Targets: Forms the third-largest copper district in North America; expected to scale annual copper production from ~125,000 tonnes to >250,000 tonnes by 2030 (via Copper World & near-term optimizations), and >350,000 tonnes with staged development of Cactus.
• Operational Synergies: Strategic redeployment of Copper World engineering and construction teams to Cactus; utilization of sulphuric acid produced at Copper World to leach oxide ore at Cactus; estimated $5 million to $10 million in annual corporate synergies.
• Per-Share Impact: Expected to be accretive to net asset value per share and bolster copper reserves and resources per share.
• Regulatory & Listing Status: Arizona Sonoran common shares will be delisted from the Toronto Stock Exchange; the company will apply to cease being a reporting issuer under Canadian securities laws.
• Technical Reference: Cactus project metrics based on an NI 43-101 Prefeasibility Study (PFS) effective October 20, 2025, citing a first 10-year average copper production of 103,000 tonnes. Hudbay intends to update the PFS post-closing to reflect its technical and project design assumptions.

Notable Quotes

• “Completing the Arizona Sonoran acquisition further enhances Hudbay’s copper growth pipeline in the U.S. and strengthens Hudbay’s position as a leading Americas-focused copper company,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “Together with the advancement of Copper World, the addition of the Cactus project to our portfolio creates one of the most significant copper districts in North America.”
• “We welcome the Cactus team to the Hudbay family, and we look forward to continuing to de-risk the Cactus project and realizing the significant operational and regional synergies with Copper World. With a strong balance sheet, sustainable free cash flow generation from our diversified operating platform and a disciplined capital allocation strategy, Hudbay is strategically well-positioned to deliver long-term value for all our stakeholders.”