08:40 AM EDT, 03/13/2024 (MT Newswires) -- Hudbay Minerals ( HBM ) said Wednesday that it has signed an agreement granting Marubeni's Canadian subsidiary an option to acquire a 20% stake in three projects located within trucking distance of Hudbay's processing facilities in Flin Flon, Manitoba.

Under the agreement, Marubeni will fund exploration expenditures of at least 12 million Canadian dollars ($8.9 million) over five years with Hudbay carrying out the exploration activities focusing on Cuprus-White Lake, Westarm and North Star in the Flin Flon region, according to Hudbay.

When Marubeni's earn-in obligations are completed, Hudbay said it will form a joint venture with Marubeni to hold the selected projects, with Hudbay acting as joint venture operator and holding an 80% interest and Marubeni owning the balance of 20%.

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