Faraday Copper Signs Letter of Intent to Acquire BHP's San Manuel Property in Arizona, Creating a Multi-Asset Copper District in the USA
BHP Endorsement Transforms Faraday into a Tier-1 Copper District Contender in Arizona
On February 20, 2026, Faraday Copper announced a non-binding Letter of Intent (LOI) with BHP Group Limited to acquire the 100% interest in the San Manuel property, which sits adjacent to Faraday’s Copper Creek project in Arizona. In exchange, BHP will receive a 30% fully diluted interest in Faraday Copper. Furthermore, BHP has committed to a 24-month financing participation right, agreeing to subscribe for 30% of any equity raise up to an aggregate of US$20 million. The agreement includes a six-month exclusivity period for due diligence, with a definitive agreement expected by the end of Q3 2026.
This is a transformative "Game Changer" event. - Strategic Validation: BHP is the world’s largest mining company. Their willingness to take a 30% equity stake in exchange for an asset confirms the high technical merit and strategic importance of the Copper Creek district. - District Consolidation: San Manuel is a past-producing mine with significant infrastructure. Combining it with Copper Creek allows for optimized mine planning, a smaller environmental footprint, and shared infrastructure, which significantly improves the project's Net Present Value (NPV). - Funding Backstop: The US$20 million financing commitment from BHP provides a massive safety net for future exploration and development costs, reducing the risk of predatory dilutive financings. - Major Partner Entry: Following the 15% investment from the Lundin Family Trust earlier, Faraday now has two of the most prestigious names in mining on its share registry.
Faraday Copper is focused on its flagship Copper Creek Project in Arizona, USA. - Project: Copper Creek is one of the largest undeveloped copper-molybdenum-silver projects in the U.S. - Status: Currently at the Preliminary Economic Assessment (PEA) stage with a 32-year mine life. - Resource: Measured and Indicated resources of 4.2 billion pounds of copper. - San Manuel Addition: The acquisition of BHP's San Manuel adds a past-producer to the portfolio, creating a multi-generational copper district.