Big Board Breakdown: Faraday paid BHP 131.6 million shares for San Manuel. BHP now owns 32% of Faraday

Faraday Copper closed its purchase of the San Manuel project in Arizona from a BHP subsidiary on October 15. It paid in stock: 131,593,046 Faraday shares. The release gives no cash, deferred or royalty consideration.

Who owns Faraday now

BHP held 6,400,000 Faraday shares, about 2.1%, before closing. It now holds 137,993,046 shares, "approximately 32.0%" on a non-diluted basis. By our arithmetic that implies about 431 million Faraday shares outstanding. Two BHP vice presidents, Elaina Ware and Dominic Perrottet, join Faraday's board. BHP's investor rights agreement includes a right of first refusal on royalty financings.

The consideration shares were valued at $657.9 million on the five day VWAP before closing. The release does not state the currency. By our arithmetic the value works out to about $5.00 a share.

What BHP handed over

San Manuel comes with a "significant historical resource" that the release says "is not compliant under the current standards." It was calculated at a copper price of US$0.80 a pound, and Faraday says it "should not be relied upon for economic evaluation." For comparison, Copper Giant's October 14 resource used US$4.75 a pound and DLP's Aurora PEA, filed this week, used US$4.90. The release does not give the historical tonnes or grade.

Faraday plans 24,000 metres of drilling to confirm the historical estimates, and says rigs are mobilized. It expects resource estimates for Copper Creek and San Manuel by mid-2027 and a Phase I study in 2028.

What is missing

The release says Faraday "is well-funded to deliver on its key milestones" but gives no cash figure, and no drilling budget. A third of the company now sits with one holder that has board seats and royalty rights, in exchange for ground whose numbers date from 80 cent copper.

Source: Faraday Copper news release, October 15, 2026.