Hudbay Minerals (TSX, NYSE: HBM) said on Monday it will acquire Arizona Sonoran Copper Company (TSX: ASCU) (OTCQX: ASCUF) in an all-share deal valued at about C$1.48 billion ($1 billion), creating what the companies say will be the third-largest copper district in North America.

The Canadian miner will issue 0.242 of a common share for each Arizona Sonoran (ASCU) share it does not already own, valuing it at C$9.35 per share based on Hudbay’s Feb. 27, 2026 closing price. The offer represents a 30% premium to ASCU’s closing price that day and a 36% premium to its 20-day volume-weighted average price. Hudbay, which already owns about 9.99% of ASCU’s outstanding shares, said the enterprise value of the transaction, net of its existing stake, is approximately $1.28 billion.

The acquisition will give Hudbay full ownership of the Cactus copper project in Arizona and expand its US growth pipeline alongside its Copper World project. After closing, existing Hudbay shareholders will own about 89% of the combined company, with former ASCU shareholders holding roughly 11%.

Chief executive Peter Kukielski said the deal strengthens Hudbay’s position as a US-focused copper growth platform. He described Cactus as a large-scale development asset in a familiar mining jurisdiction and said the combined projects would form a major copper hub in Arizona while preserving financial flexibility.

Arizona Sonoran chief executive George Ogilvie said the transaction delivers immediate value and allows shareholders to retain exposure to Cactus through Hudbay shares. He added that Hudbay’s balance sheet and Arizona operating experience should reduce development and financing risk.