Hudbay leads 49.8 million dollar investment in Pecoy Copper

Pecoy Copper has agreed to raise 49.8 million dollars (35.7 million US dollars) from Hudbay Minerals and one unnamed investor to fund drilling and technical studies at its copper and gold project in southern Peru. Hudbay will invest 30.1 million dollars and the second investor 19.7 million, leaving each with just under 10 percent of Pecoy on a partially diluted basis after closing, which is expected around Thursday subject to regulatory approvals including TSX Venture Exchange acceptance.

Pecoy will issue about 24.7 million shares at 2.02 dollars each, a 10 percent premium to its 10-day volume-weighted average price through October 30, and the financing would lift its cash to roughly 70 million dollars. The project carries an April 2025 inferred resource of 865 million tonnes grading 0.34 percent copper, and the new money will support resource expansion and metallurgical work ahead of an updated resource estimate expected early next year.