Southern Hemisphere nabs Canadian heavyweight for Chile copper project
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Junior copper explorer Southern Hemisphere Mining has nabbed itself some muscle to help bring its Llahuin project in Chile into production.
Major Canadian copper producer Hudbay Minerals has taken a liking to the project and wants to stump up $5.8 million in cash over five years for a 70 per cent stake.
The Llahuin project already has a defined resource and the main target is a porphyry zone. Porphyry — a crystal-like orebody formed from molten rock — is the world’s main source of copper.
“This is an exceptional deal for the company,” said Southern Hemisphere (ASX:SUH) chairman David Lenigas, who also chairs Pilbara gold explorer Artemis.
“To have a major copper producer of Hudbay’s global standing farm in to Llahuin is a big achievement for Southern Hemisphere Mining.”
The two companies have inked an option agreement that paves the way for Hudbay to spend at the very least $3.5 million on exploration in the first three years.
Southern Hemisphere previously had the help of another Canadian producer — Lundin Mining, which pulled out of the partnership after spending over $7 million on exploration.
Improving global copper markets as a result of new demand generated by the energy storage and electric vehicle sectors prompted the company to step up its efforts to find a new partner.
The shares were unchanged on Thursday.