(February 26, 2026) -- Faraday Copper Corp. has signed a non-binding letter of intent with a subsidiary of BHP Group Ltd. outlining a proposed deal in which Faraday would acquire full ownership of the San Manuel property from BHP. As consideration, Faraday would issue BHP 30% of its common shares. BHP would also receive customary investor rights, provided it maintains a minimum ownership stake. The companies expect to close the transaction by the end of the third quarter of 2026.
Located next to Faraday’s Copper Creek project in Arizona, the San Manuel property could allow the two projects to share infrastructure and future facilities. Faraday said that integration could improve capital efficiency and reduce the combined environmental footprint compared with developing each asset independently.
“This agreement provides the opportunity for a transformative acquisition as it looks to consolidate two adjacent and complementary assets in the heart of the Arizona copper corridor at a time when sourcing of critical minerals within the USA is essential,” said Paul Harbidge, Faraday’s president and CEO. He added that the combined footprint could evolve into a multi-generational copper district supplying “made-in-America” copper while creating economic benefits for nearby communities, with infrastructure optimization helping to minimize impacts.
Under the LOI, the transfer would include the former San Manuel copper mine, including the San Manuel and Kalamazoo deposits, the San Manuel plant site and closed tailings storage facilities, surrounding BHP-owned lands, and associated mineral estate interests. The package would also include the Black Hills quarry and Camp Grant quarry, along with related rights and assets. Faraday would assume all liabilities tied to the site, including environmental and closure obligations, and would agree to post-closing covenants addressing operational practices, environmental standards, and stakeholder engagement consistent with international industry expectations.
“BHP looks forward to working with Faraday to create a pathway to bring on additional US copper supply to the market,” said Catherine Raw, BHP’s chief development officer, adding that the proposed deal aligns with U.S. goals of strengthening copper supply chain resilience and supporting economic development in Pinal County.
The LOI includes a six-month period of reciprocal exclusivity for the parties to pursue definitive agreements. It also provides that, for 24 months after the LOI is executed, BHP would have the right to participate in Faraday equity financings by subscribing for 30% of any equity raise, up to an aggregate maximum of $20 million during the participation period (or a lower amount if agreed by Faraday).