Hudbay Brings In New Japanese Partner for Exploration of Projects in Manitoba

Dow Jones01-22 21:27
 

By Robb M. Stewart

 

Hudbay Minerals has secured another funding partner to bolster its exploration in northern Manitoba of properties that in the past produced both base and precious metals.

The copper-focused mining company said Thursday it granted a Japanese government agency, Japan Organization for Metals & Energy Security, an option to buy a 10% interest in three projects located within trucking distance of Hudbay's processing facilities in the town of Flin Flon, Manitoba. To gain the stake, the agency would have to fund at least 6 million Canadian dollars (US$4.3 million) for exploration over about three years.

The agreement represents an amendment of a deal Hudbay struck in early 2024 with Marubeni, a major Japanese integrated-trading and investment-business conglomerate. That pact gave a Canadian subsidiary of Marubeni the right to buy a 20% interest in the three projects, provided that it, among other things, fund at least C$12 million in exploration spending.

If the two investors go ahead, Hudbay will be operator of the project with a majority 70% stake.

President and Chief Executive Peter Kukielski said the addition of a new partner marks a represents a significant milestone toward unlocking potential future value in the Flin Flon region.

The Flin Flon projects include Cuprus-White Lake, Westarm and North Star, which were selected by Marubeni following a period of detailed due diligence. While prospective, the properties each held past producing mines with attractive grades, Hudbay said.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

January 22, 2026 08:27 ET (13:27 GMT)

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