Hudbay Minerals (TSX: HBM) is now the majority owner and operator of the Talbot project in Manitoba, having exercised its right to buy back a 2% interest in the property from Canadian mining junior Rockcliff Metals (CSE: RCLF).
As consideration for the buy-back, Hudbay has made a C$725,892 cash payment to Rockcliff, and it now owns 51% of the project with Rockcliff holding the remaining 49%.
Compared to 30 mines that have gone into production in the area, Talbot holds the fourth-largest initial resource prior to production
Once Hudbay takes the project into production, Rockcliff will retain a 35% carried interest in the project through life-of-mine, provided that Rockcliff contributes its pro-rata share of pre-construction capital.
The Talbot property is a gold-rich copper asset hosting indicated mineral resource of 2.2 million tonnes at 2.3% Cu, 2.1 g/t Au, 1.8% Zn, 36 g/t Ag and inferred mineral resource of 2.4 million tonnes at 1.1% Cu, 1.9 g/t Au, 1.7% Zn, 25.8 g/t Ag.
Rockcliff, a major landholder in the Flin Flon-Snow Lake greenstone belt of central Manitoba, has been developing the Talbot deposit over the past six years.
Compared to 30 mines that have gone into production in the area, Talbot holds the fourth-largest initial resource prior to production, after the past-producing Flin Flon mine and the Lalor and 777 mines.
Shares of Hudbay Minerals were down 1.8% by 1:20 p.m. EDT on the TSX, giving the Toronto-based copper miner a market capitalization of C$1.37 billion.
Meanwhile, Rockcliff Metals’ stock plunged 12.5%, capping the company’s value at C$32.27 million.