Hudbay Minerals Inc. has entered into an agreement with Mason Resources Corp. to purchase the remaining 86% interest in the company. The transaction is valued at C$31 million, with Mason shareholders receiving C$0.40 for each Mason common share. The enterprise value to Hudbay, net of Mason’s cash and Hudbay’s current 14% ownership stake, is approximately US$15 million.

“The acquisition of the Ann Mason project is another step in Hudbay’s consistent strategy of accretive acquisitions of scarce, high-quality copper resources in mining-friendly jurisdictions,” said Alan Hair, president and CEO of Hudbay Minerals. “Ann Mason is an ideal fit for Hudbay’s development pipeline and is at the stage where we can apply our exploration expertise, advance technical studies, and leverage our proven mine development team to create value for our shareholders.”

The Ann Mason deposit, located in the Yerington District of Nevada, has measured and indicated mineral resource of 1.4 billion metric tons (mt) grading 0.32% copper, 0.006% molybdenum, 0.03 grams/mt gold and 0.65 g/mt silver and an inferred mineral resource of 623 million mt grading 0.29% copper, 0.007% molybdenum, 0.03 g/mt gold and 0.66 g/mt silver using a 0.2% copper cut-off.

“We are very pleased with the progress we have made establishing the Ann Mason project as a world-class and highly prospective copper deposit,” said Stephen Scott, president CEO of Mason. “The acquisition by a well-run, diversified, cash flowing base metal producer ensures a faster and lower risk development path for the Ann Mason project. Given its significant scale, it is not feasible for Mason to develop the mine on a stand-alone basis in a timely fashion.”

Mason’s board of directors has unanimously approved the agreement and recommended that Mason shareholders vote in favor of it. The transaction is expected to close in December.