Toronto-listed Hudbay Minerals has signed an amended and restated option agreement with Japan Organisation for Metals and Energy Security (Jogmec) and Marubeni to expand their existing exploration partnership in the Flin Flon region of Manitoba.

Under the agreement, Hudbay has granted Jogmec an option to acquire a 10% interest in three projects – Cuprus-White Lake, Westarm and North Star – located within trucking distance of its Flin Flon processing facilities.

To earn its interest, Jogmec will be required to fund at least C$6-million in exploration expenditure over about three years, with Hudbay acting as operator. The arrangement amends a March 2024 agreement under which Marubeni was granted an option to earn a 20% interest by funding at least C$12-million in exploration.

If both parties fulfill their earn-in obligations and elect to exercise their respective options, a three-party joint venture (JV) will be formed, with Hudbay holding 70%, Marubeni 20% and Jogmec 10%. Hudbay will remain operator of the JV.

“This expanded exploration partnership for the Flin Flon region, which now welcomes Jogmec alongside our valued partners at Marubeni, represents a significant milestone towards unlocking potential future value in the Flin Flon region,” said Hudbay president and CEO Peter Kukielski.

“This arrangement allows us to partner with both Marubeni and Jogmec, while leveraging our operational and exploration expertise to test our large Flin Flon land package for a potential new discovery in the region to utilise Hudbay’s idle processing infrastructure in Flin Flon.

“Hudbay has discovered and operated 29 mines in our nearly 100-year history in Manitoba, and we have the potential to continue that success with our continued focus on exploration.”

The three projects were selected by Marubeni following detailed due diligence and all host historical producing mines with attractive grades of base and precious metals. Each is located within 20 km of Hudbay’s Flin Flon milling complex.

The Cuprus-White Lake project covers 3 384 ha and includes the former Cuprus and White Lake mines, which produced a combined 1.3-million tonnes at copper grades of up to 3.25% and gold grades of up to 1.3 g/t. The area is considered highly prospective owing to favourable geology and limited modern exploration.

Westarm comprises 727 ha and produced more than 1.4-million tonnes between the 1970s and 1990s at average grades of 3.2% copper and 1.58 g/t gold. Historical drilling has been relatively shallow, with numerous untested geophysical anomalies identified.

The North Star project covers 406 ha and includes two former mines that produced more than 320 000 t at copper grades of up to 6.11% and gold grades of up to 0.96 g/t. The area has seen limited modern exploration, despite favourable geophysical results.

During the earn-in period, Marubeni and Jogmec will fund exploration activities, while Hudbay will manage and implement work programmes. After formation of a JV, future costs will be shared in proportion to each party’s interest.

Should any of the projects advance to production, the partners may consider using Hudbay’s idle Flin Flon milling complex to process ore.

Exploration is set to continue in winter 2026 with geophysical surveys and up to 5 600 m of drilling, followed by surface mapping and a further 5 400 m drilling programme in summer 2026.