Faraday Copper is making a big play in Pinal County, moving to acquire BHP's long-idled San Manuel property in Arizona after signing a framework letter of intent last Friday. The goal is to fold the 44-year brownfield site into Faraday's adjacent Copper Creek claims and stitch the pieces together into one district-scale copper operation. For now, it is all still tentative: the non-binding LOI hinges on due diligence, regulatory signoffs and a definitive agreement the companies say could be wrapped up by the end of the third quarter of 2026.
As laid out by BHP, the LOI would see Faraday acquire 100% of the San Manuel property in exchange for common shares, leaving BHP with roughly a 30% stake on a fully diluted basis. BHP has also agreed to participate in any Faraday equity raises over the next two years, up to a maximum aggregated subscription amount of US$20 million. Both sides emphasize that timing will depend on the usual third-party consents and regulatory approvals.
Under the deal framework, Faraday would take over operational control and related site liabilities, including the legacy San Manuel plant site, quarries and tailings facilities that come with the package. The San Manuel and Kalamazoo deposits powered the historic operation between 1955 and 1999, leaving behind a deep porphyry inventory and infrastructure that Faraday says could suit modern block-cave extraction at depth, according to Faraday Copper.
Funding and backing
Market filings show Faraday closed a financing on July 29, 2025 that raised roughly C$48.8 million to advance Copper Creek and related technical work. That infusion, combined with an active exploration program, helped position Faraday to chase district consolidation if the San Manuel terms are ultimately finalized, per MarketScreener corporate filings.
What it means for Pinal County and U.S. copper supply
BHP is pitching the LOI as part of a broader effort to bring more domestic copper capacity online. Chief Development Officer Catherine Raw said the partnership creates “a pathway to bring on additional US copper supply to the market” and supports resilience in U.S. supply chains. Independent coverage and analyst notes suggest the combined district could materially increase the project's scale. Mining.com cited broker commentary estimating staged production could reach on the order of 100,000 to 150,000 tonnes of copper per year under a large-scale development scenario.
Timeline and approvals
Both companies continue to stress that the LOI is non-binding outside the exclusivity and financing participation terms. A definitive purchase and sale agreement will depend on confirmatory due diligence and regulatory reviews. Near-term milestone targets reported by Discovery Alert include negotiation of a definitive agreement and completion of environmental and technical studies targeted for the second quarter of 2026.
Regulators and permitting will play a central role. The adjacent Copper Creek program has already cleared a key permitting hurdle: the Bureau of Land Management published a final environmental assessment and Finding of No Significant Impact on June 30, 2025, a development supporters say could help coordinate exploration and staging efforts across the district (federal permits dashboard).
Legal and environmental responsibilities
The LOI structure would shift operational and remediation responsibility to the buyer. Public summaries indicate Faraday would assume BHP's environmental and closure liabilities for San Manuel if the transaction closes. The arrangement limits BHP's immediate capital exposure through the defined participation cap, a detail highlighted in industry coverage of the LOI as part of the risk-sharing mechanics between major and junior partners. Mining-Technology further shows the transaction will require definitive documentation, TSX approval and a shareholder vote before it can close.
For Pinal County, the proposal would revive a long-dormant asset and could bring jobs and contractor work back to the area if the parties move from LOI to a definitive sale. It also underscores a more complicated task: reconciling 27 years of care-and-maintenance legacy issues with today's environmental and permitting standards. Investors, local officials and residents alike will be watching for due diligence disclosures, financing details and regulatory filings over the coming months as the companies move toward, or potentially away from, a final deal.
