Faraday Copper Corp. has agreed to acquire BHP Group Ltd.’s San Manuel property in Arizona, creating a multi-asset district in the US.
Under the terms of the agreement, BHP will receive a 30 per cent stake in Faraday. In addition, BHP has agreed to participate in any equity raise by Faraday over two years, but up to a maximum aggregated subscription amount of US$20 million.
The transaction is expected to close by the end of the third quarter of 2026.
The San Manuel property is adjacent to Faraday’s Copper Creek project. The combined project could become a multi-generational copper district delivering made-in-America copper.
Paul Harbidge, CEO of Faraday, said: “This agreement provides the opportunity for a transformative acquisition as it looks to consolidate two adjacent and complementary assets in the heart of the Arizona copper corridor at a time when sourcing of critical minerals within the USA is essential.
“The combined project has the potential to become a multi-generational copper district delivering made-in-America copper, while providing significant economic opportunities to the local communities. This would allow for the optimisation of infrastructure and minimised environmental footprint compared to each project advancing independently.”
The San Miguel mine was one of the most significant copper producers in the US, generating over 4.5 million tonnes of copper between 1955 and 1999.
The mine was closed in 1999 following a period of sustained low copper prices. A significant mineral inventory remained in-situ upon closure in 1999.
The brownfield redevelopment of San Manuel, under this ownership structure, provides the potential for new copper units to be brought to market at pace.
BHP’s Chief Development Officer, Catherine Raw said: “BHP looks forward to working with Faraday to create a pathway to bring on additional US copper supply to the market.
“This would support the US objective of greater copper supply chain resilience, as well as economic development in the Pinal County region.”
