Hudbay leads $49.8M investment in Pecoy Copper
2026-11-03 10:45:26 [Print]
Canadian explorer Pecoy Copper has agreed to raise $49.8 million (US$35.7 million) from Hudbay Minerals and another investor to fund drilling and technical studies at its copper-gold project in southern Peru.
Hudbay is to invest $30.1 million, while the unnamed investor has committed $19.7 million, Pecoy said Monday. Each would hold just under 10% after closing, calculated on a partially diluted basis.
Vancouver-based Pecoy plans to issue about 24.7 million shares at $2.02 apiece, with closing expected around Thursday, subject to regulatory approvals, including TSX Venture Exchange acceptance.
Hudbay would receive rights to participate in future financings and top up its holdings to maintain ownership of up to 9.9%. Subject to ownership thresholds, it could nominate one director, or two if Pecoy's board expands to at least 10 members.
The explorer owns the Pecoy and Tororume projects in southern Peru's Arequipa region. Pecoy lies about 275 km northwest of Arequipa, at an elevation of about 1,650 metres, near highway, power and port infrastructure.
An April 2025 resource estimate outlined 865 million inferred tonnes grading 0.34% copper, 0.012% molybdenum, 0.05 gram gold per tonne and 1.33 grams silver, for contained metal of about 6.45 billion lb. of copper. The estimate uses a 0.23% copper cut-off. These resources have not demonstrated economic viability.
Tororume, 8 km to the north, provides another exploration target. Previous owner Pembrook completed nine widely spaced drill holes between 2017 and 2023, intersecting copper and molybdenum mineralization. Pecoy says much of the system remains untested.
The new money will support resource expansion, geological work and metallurgical testing ahead of an updated Pecoy resource estimate. Adams expects that estimate early next year and a preliminary economic assessment later in 2027.
Hudbay is to invest $30.1 million, while the unnamed investor has committed $19.7 million, Pecoy said Monday. Each would hold just under 10% after closing, calculated on a partially diluted basis.
Vancouver-based Pecoy plans to issue about 24.7 million shares at $2.02 apiece, with closing expected around Thursday, subject to regulatory approvals, including TSX Venture Exchange acceptance.
Hudbay would receive rights to participate in future financings and top up its holdings to maintain ownership of up to 9.9%. Subject to ownership thresholds, it could nominate one director, or two if Pecoy's board expands to at least 10 members.
The explorer owns the Pecoy and Tororume projects in southern Peru's Arequipa region. Pecoy lies about 275 km northwest of Arequipa, at an elevation of about 1,650 metres, near highway, power and port infrastructure.
An April 2025 resource estimate outlined 865 million inferred tonnes grading 0.34% copper, 0.012% molybdenum, 0.05 gram gold per tonne and 1.33 grams silver, for contained metal of about 6.45 billion lb. of copper. The estimate uses a 0.23% copper cut-off. These resources have not demonstrated economic viability.
Tororume, 8 km to the north, provides another exploration target. Previous owner Pembrook completed nine widely spaced drill holes between 2017 and 2023, intersecting copper and molybdenum mineralization. Pecoy says much of the system remains untested.
The new money will support resource expansion, geological work and metallurgical testing ahead of an updated Pecoy resource estimate. Adams expects that estimate early next year and a preliminary economic assessment later in 2027.
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