Faraday Copper closes $100 million private placement
Faraday Copper Corp. [FDY-TSX, CPPKF-OTCQX] said it has raised $100 million from a non-brokered private placement financing that was backed by strategic investors, including the Ludin Family Trust and a unit of BHP Group Ltd. [BHP-NYSE, BHPTY-OTCPK].
Under the terms of the offering, Faraday issued 23.8 million common shares, priced at $4.20 per share. Proceeds will be used to advance copper projects in Arizona, including the proposed acquisition of the San Manuel copper mine property from BHP.
Faraday Copper shares rose 1.25% or $0.06 to $4.85 in early trading Wednesday. The shares currently trade in a 52-week range of $5.54 and 72 cents.
Faraday is a well-funded Canadian exploration company with a focus on its Copper Creek project in Arizona, which it describes as one of the largest undeveloped copper projects in North America with open pit and bulk mining potential.
The property is located in Pinal County less than two hours northeast of Tucson, and in the heart of a major northwest-trending belt, which includes well-known copper mines in the Miami-Globe and Ray mining districts, with a major east-northeast trending copper belt made evident by the former BHP Kalamazoo mine in San Manuel, Arizona.
The exploration site covers 41 square kilometres and has a rich history of exploration and mining across patented and unpatented claims. Copper Creek hosts multiple breccia porphyry copper deposits. Two historic copper and molybdenum mineral resource estimates were prepared in accordance with the Canadian Institute of Mining (CIM) standards, identifying the economic potential for both open pit and underground scenarios.
Total measured and indicated resources (open pit and underground) stand at 355.1 million tonnes of grade 0.50% copper and 0.008% molybdenum and 1.3 g/t silver or 0.53% copper equivalent (CuEq) or 4,126.3 (Mlbs) CuEq).
In a press release on February 20, 2026, Faraday said it has entered into a non-binding letter of intent with a unit of BHP in relation to the proposed acquisition by Faraday of BHP’s San Manuel property, which lies adjacent to the Copper Creek project. As consideration for the proposed transaction, Faraday would issue to BHP common shares equal to the equivalent of 30% of the issued and outstanding shares of Faraday. In addition, BHP would be granted customary investor rights provided it maintains a minimum shareholding requirement. Closing of the proposed transaction will be governed by the terms of the definitive purchase and sale agreement and is expected by the end of the third quarter of 2026.
In a project overview, Faraday said the San Manuel Mine, consists of the San Manuel and Kalamazoo deposits, which operated as a combined underground block cave and open pit mine, generating over 4.5 million tonnes of copper between 1955 and 1999.
The combined project would have the potential to become a multi-generational copper district delivering made-in-America copper, Faraday has said