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Hudbay Minerals (NYSE:HBM) said Thursday it signed a memorandum of understanding with Japan’s Marubeni (OTCPK:MARUY) for a multi-year exploration partnership related to existing processing facilities in Flin Flon, Manitoba.
The MoU contemplates that Marubeni (OTCPK:MARUY) would be required to fund $10M-$15M of exploration expenditures on the project properties, with Hudbay (HBM) serving as operator and carrying out exploration activities.
The agreement also provides a framework for a future joint venture between Hudbay (HBM) and Marubeni (OTCPK:MARUY) if the exploration efforts are successful in discovering new deposits in the Flin Flon region.
“This exploration partnership would allow us to couple our operational and exploration expertise with Marubeni’s balance sheet strength to test our large Flin Flon land package and potentially revive our dormant Flin Flon processing facilities,” Hudbay (HBM) President and CEO Peter Kukielski said.
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