08:43 AM EDT, 03/27/2025 (MT Newswires) -- Hudbay Minerals ( HBM ) said it has signed an agreement with Mitsubishi Materials to acquire its 25% interest in Copper Mountain Mine for $4.5 million in upfront cash and up to $39.8 million in deferred and contingent cash payments.

Under the agreement, Hudbay will also be solely responsible to settle Copper Mountain Mine's outstanding obligations, including an intercompany loan owing to Hudbay, of which 25% represents about $104 million, the company said.

Hudbay said it will pay the $4.5 million on closing, and $3.0 million per year for seven years beginning on the one-year anniversary of the closing, as well as five additional contingent payments of $3.8 million payable after New Ingerbelle achieves minimum annual operating thresholds.

The deal is expected to close in Q2, the company said.