Why Hudbay Minerals (HBM) Shares Are Trading Higher Today - Hudbay Minerals (NYSE:HBM), Coppernico Metals (OTC:CPPMF)

Hudbay Minerals Inc HBM disclosed a merger deal with Copper Mountain Mining Corporation CPPMF for $439 million to create a premier Americas-focused copper producer company.
The agreement represents a 23% premium to Copper Mountain shareholders based on Hudbay's and Copper Mountain's 10-day volume-weighted-average share prices as of April 12, 2023.
As per merger terms, each Copper Mountain shareholder will receive 0.381 of a Hudbay common share for each Copper Mountain common share held. Also, the existing Hudbay and Copper Mountain shareholders will own around 76% and 24% of Hudbay, respectively.
The combined company represents Canada's third largest copper producer, based on 2023 estimated copper production. It is expected to produce 150,000 tonnes of copper per year.
The company will have a geographically balanced portfolio in tier-one mining jurisdictions, with around 55% of estimated NAV estimated from North American assets and 45% of estimated NAV from South American assets.
The merger will unlock operating efficiencies and corporate synergies of $30 million per year, accretive to Hudbay.
The deal is expected to close in the late second quarter or by the early third quarter of 2023.
Price Action: HBM shares are trading higher by 2.12% at $5.30 on the last check Thursday.

Hudbay Minerals To Merge With Copper Mountain Mining, From Canada's Third Largest Copper Mining Powerhouse.