Hudbay and Marubeni Sign Flin Flon Option Agreement to Advance Exploration Partnership - Seite 2

Highlights of the Agreement

• During the earn-in period, Marubeni will fund exploration expenditures of up to C$12 million across three highly prospective projects over five years. A significant budget of C$7 million has been agreed to for the 2025 winter exploration program.
• Upon successful completion of Marubeni’s earn-in obligations, Marubeni may exercise its Option to form a joint venture with Hudbay for any of the designated projects.
• The joint venture will allow both parties to jointly pursue development of the projects, with Hudbay holding an 80% interest and Marubeni holding the remaining 20% interest.
• After formation of the joint venture, all subsequent costs for exploration and development of the properties will be funded by each member in proportion to their respective participating interest.  
• Hudbay will act as the joint venture operator and manage work programs to progress the exploration and development efforts. Should any of the projects advance to production, the parties may discuss the utilization of Hudbay’s idle Flin Flon milling complex to process ore.
  

Flin Flon Projects

The Agreement focuses on three projects in the Flin Flon region, namely Cuprus-White Lake, Westarm and North Star, which were selected by Marubeni following a period of detailed due diligence. All three properties hold past producing mines that generated meaningful production with attractive grades of both base metals and precious metals. The properties remain highly prospective with potential for further discovery based on the attractive geological setting, limited historical deep drilling and promising geochemical and geophysical targets. Cuprus-White Lake, Westarm and North Star are all within 20 kilometres of Hudbay’s Flin Flon milling complex.

Cuprus-White Lake

The Cuprus-White Lake project is located about 10 kilometres southeast of Flin Flon, consisting of 3,384 hectares including 94 claims. Historically, the area included the Cuprus mine, which produced 463,000 tonnes at grades of 3.25% copper and 1.3 grams per tonne gold in the early 1950s and the White Lake mine, which produced 850,000 tonnes at grades of 1.98% copper and 0.72 grams per tonne gold over ten years in the 1970s and 1980s. The geology in the area hosts favourable juvenile arc rocks on several parallel horizons, and most historical drilling was done without modern geophysical targeting.