Faraday Copper Buys BHP's San Manuel in Arizona

Faraday Copper has agreed to acquire BHP's San Manuel site in Arizona, next to Faraday's own Copper Creek project, according to the company. The deal will create a combined copper district across both sites.

In the deal, Faraday will issue BHP shares equivalent to a 30% interest in the company on a fully diluted basis as consideration. This includes shares acquired through a CA$100m (US$70.5m) private placement made in March 2026. 

BHP is expected to hold approximately 138 million common shares once the transaction closes.

The Melbourne-based operator will also be given customary investor rights under an investor rights agreement, subject to maintaining a minimum shareholding.

Paul Harbidge, President and CEO of Faraday Copper, says: "This is a transformational acquisition for Faraday. 

“Combining San Manuel with our Copper Creek project, with the support of the Lundin Group and BHP as strategic shareholders, positions us well to become one of the largest undeveloped copper districts in the US with a path to development and near-term copper production."

The strategic significance

Through the deal, Faraday is looking to scale its copper interests in the form of combined resources. The company expects San Manuel and Copper Creek together to form a multi-generational copper district, capable of delivering domestically produced copper for the US market.

San Manuel's existing private land position is expected to accelerate the pathway to production, according to Faraday.

The company plans to use established infrastructure at the site to support faster permitting and development timelines than would be possible via a new, greenfield project.

Combining San Manuel's historical production data with Copper Creek's exploration results gives the company one of the largest undeveloped copper positions in the country.

Faraday's shareholders are due to vote on the transaction in August 2026. A termination fee of US$12m applies if the deal does not proceed.

The combined projects

San Manuel operated as an underground copper mine between 1955 and 1999, producing around 4.5 million tonnes of copper over its lifetime, making it one of the largest underground mines in the US while running.

The property is on private land, which Faraday expects to simplify permitting, compared with projects on federal or state ground.

Existing infrastructure at San Manuel, including underground workings and surface facilities, is expected to reduce both the cost and timeline of redevelopment.

Copper Creek, Faraday's adjacent project, has been a centre of extensive exploration. The company has drilled more than 257,000m across the site and mapped more than 320 breccia occurrences, a geological structure associated with copper mineralisation.

Combined, San Manuel and Copper Creek give Faraday control of a fertile swathe of land in one of Arizona's established copper-producing areas. 

The company says the two projects complement each other technically as well as geographically, with San Manuel's infrastructure supporting faster development of Copper Creek's resource.

Timeline and outlook

The transaction is expected to close in the third quarter of 2026, subject to regulatory approval and a vote by Faraday shareholders in August 2026.

There is a termination fee of US$12m, if the deal fails to complete. 

Once closed, BHP's shareholding in Faraday will rise to approximately 32.5% on a non-diluted basis, combining the San Manuel shares with those acquired through the March 2026 private placement.

BHP keeps hold of its other copper interests in Arizona, including its stakes in the Resolution and Globe-Miami projects, keeping it alongside Faraday as one of several major operators active in the state's copper district.