Lundin Mining has approached BHP Group about making a joint bid for copper miner Filo, people with knowledge of the matter said, in a move that could solve fundraising needs for a neighboring project it wants to build.

Lundin has held preliminary discussions with BHP about teaming up on a possible deal for Filo, according to the people, who asked not to be identified as the information is private. Shares of Filo jumped as much as 12% on the news before giving back some gains. The stock traded 8% higher at 3:36 p.m. in Toronto, giving the company a market value of about C$3.7-billion.

It’s unclear how receptive BHP is to the proposal. The wealthy Lundin family, who own about 15% of their eponymously named miner, have a 32% stake in Filo while BHP holds nearly 6%, according to data compiled by Bloomberg.

Lundin has pitched the idea of buying out other shareholders in Filo and then combining the target’s Filo del Sol copper project — located on the Argentina-Chile border — with Lundin’s neighboring Josemaria operation, the people said. Bringing the two assets together would make it easier for Lundin to finance their development while bringing BHP much-needed growth in copper.

Talks are at a preliminary stage and there are no guarantees they will proceed with a bid, the people said. Representatives for BHP and Lundin declined to comment. Filo didn’t immediately respond to requests for comment.

Lundin is keen to develop the Josemaria project in Argentina, a vast copper and gold deposit in the Andes, and has said it is looking to bring in a partner. The company is considering a potential sale of two European zinc mines as it looks to raise funds and focus more on copper, Bloomberg reported last month.

The world’s biggest mining companies are all seeking to expand in copper, in anticipation of rising prices as demand for clean power and data centers is forecast to outstrip supply in future years.

BHP made a blockbuster $49-billion bid for Anglo American earlier this year — primarily for its suite of South American copper mines — but was left frustrated when its target turned down its offer.