As per the deal, the company will receive $140m in cash at closing of the transaction and $30m upon satisfaction of certain conditions during the course of Solway’s development of the project.
HudBay president and CEO David Garofalo said while Fenix is a robust project that warrants development, it does not fit HudBay’s strategy of focusing on VMS and porphyry deposits.
"We believe that the sale proceeds will further strengthen our balance sheet as we develop our Lalor and Constancia projects," Garofalo said.
Closing of the transaction is expected to occur in the third quarter of this year.
HudBay is principally focused on the discovery, production and marketing of base and precious metals.
