Faraday Copper issues 131.6M shares for San Manuel acquisition
BHP holds about 32 per cent after closing, as crews mobilize for 24,000 metres of drilling ahead of resource estimates due by mid-2027.
Mara Quinlan
Faraday Copper Corp. TSEFDY OTCMKTSCPPKF said on Thursday it closed the San Manuel acquisition in Arizona for 131,593,046 shares, combining the property with Copper Creek. The 100 per cent owned Redhawk Copper Complex brings together about 35,000 acres of private land.
Shares rose 0.4 per cent to C$4.79 in Toronto at 4:00 p.m. EDT on Thursday, before the announcement, according to the TSEFDY quote.
The seller, BHP Group Limited ASXBHP, set out July 2 terms for shares equivalent to a 30 per cent interest on a fully diluted basis. Faraday said the closing brought the seller's total holding to 137,993,046 shares, about 32 per cent on a non-diluted basis.
Faraday has mobilized crews and rigs for an initial 24,000 metres of drilling at San Manuel and Kalamazoo, with drilling expected to start within days of Thursday's announcement. Resource estimates for San Manuel and Copper Creek are expected by mid-2027.
The acquired property adds about 27,000 acres of private land and access to road, rail, gas and power infrastructure. Faraday plans to prioritize copper cathode production, followed by open-pit sulphides and then underground development, subject to further studies.
Under the July 2 agreement, Faraday assumes all liabilities related to San Manuel, including environmental and closure liabilities. The assets include the legacy mine, land associated with former processing infrastructure and closed tailings facilities, plus the Black Hills and Camp Grant quarries.
The seller also secured shareholder and offtake rights, including a right to participate in future equity raises.
Faraday reported on Aug. 7 that it held C$94.2 million in cash and C$32 million in term deposits at June 30. The exploration company generated no revenue and relied mainly on equity financing to fund operations.
A non-brokered private placement that closed March 11 raised C$100 million. Investors paid C$4.20 per share for 23.81 million shares in that financing.
"The program is designed to confirm the historical resource estimates and provide modern technical data to support future economic studies," chief executive Paul Harbidge said in Thursday's release.
Faraday appointed Elaina Ware and Dominic Perrottet to its board at closing. Both are BHP vice-presidents.
The historical San Manuel resource does not comply with current Canadian mineral disclosure standards. Drilling will also collect metallurgical samples and geotechnical data, while testing for potential silver and gold credits.
Read more: Selkirk Copper drills 44.7m at 2.12 per cent copper ahead of Minto resource update
December copper futures were quoted at US$6.6155 a pound on COMEX in exchange data updated at 5:50 p.m. CDT on Wednesday.
A later Phase II study is expected to examine underground mineralization at Kalamazoo, American Eagle and Keel.
Faraday expects the resource estimates by mid-2027, followed by a Phase I prefeasibility study in 2028 focused on copper cathodes and open-pit sulphide production.
