The deal is the latest in a wave of buyout offers across the mining sector, as companies look to expand their copper footprint. The red metal is a hot target as it is seen as indispensable to the global energy transition from hydrocarbons.

The combined company would create the third largest copper producer in Canada and the deal could unlock $30 million per year in operating efficiencies and corporate synergies, Hudbay said.

Last week Glencore Plc made an unsolicited $22.5 billion bid for copper miner Teck Resources.

Copper is used in everything from electrical wiring to rechargeable batteries is crucial for global energy transition towards renewable sources.

Under terms of the deal, each Copper Mountain shareholder will receive 0.381 of a Hudbay common share for each Copper Mountain common share held. The deal values Copper Mountain at C$2.67 per share which represents a 18% premium to it last close.

Upon closing of the deal, existing Hudbay and Copper Mountain shareholders will own about 76% and 24% of Hudbay, respectively.

The miners expect the deal to be completed late in the second quarter or in early third quarter of 2023.

US-listed shares of Hudbay were down 3.7% in pre-market trade.