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Copper|Financial|Mining|PROJECT|Projects|supply-chain
Copper|Financial|Mining|PROJECT|Projects|supply-chain
copper|financial|mining|project|projects|supply chain

Advisory firm echoes Arizona Sonoran Copper board decision to approve merger with Hudbay

Hudbay's Copper World site area

Hudbay's Copper World site area

4th May 2026

By: Marleny Arnoldi

Online News Editor

     

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Independent proxy advisory firm Institutional Shareholders (ISS) has recommended that shareholders of TSX-listed Arizona Sonoran Copper vote in favour of a proposed arrangement with Canadian mining major Hudbay Minerals.

The merger is set to create the third-biggest copper district in North America.  

Under the terms of the arrangement agreement, each Arizona Sonoran shareholder will receive 0.242 of a Hudbay common share for each Arizona Sonoran share held, which values the deal at $1.48-billion.

In making its recommendation that shareholders vote in favour of the arrangement, ISS says the proposed merger is strategically sound, as the combined entity is expected to benefit from a strengthened financial position and increased liquidity.

The board and independent directors of Arizona Sonoran also previously recommended that the arrangement be approved, since it is a fair offer to shareholders and in the best interest of the company.

The voting deadline is on May 7.

Arizona Sonoran owns the Cactus copper project, in Arizona, while Hudbay currently produces about 125 000 t/y of copper. Hudbay plans to reach production of 250 000 t/y by 2030 through its Copper World and near-term optimisation projects, which could be boosted to 350 000 t/y if the Cactus mine is acquired and developed in stages.

Mining Weekly previously reported that the combined district is expected to become one of the largest sources of domestically produced copper cathode in the US, positioning Hudbay as a key supplier to the US critical minerals supply chain.

Upon completion of the arrangement, existing Hudbay shareholders will own about 89% of the enlarged company, with Arizona Sonoran shareholders holding the remaining 11%.

Edited by Creamer Media Reporter

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