Rockcliff has described Talbot as a gold-rich copper asset, which ties in with base metals producer Hudbay's pivot to gold production at its Lalor mine in Snow Lake.

Rockcliff Metals had earned 51% of Talbot in December 2019, by spending more than C$6 million since 2014, but said yesterday Hudbay had exercised its buy-back right ahead of a November deadline and acquired a further 2% of Talbot for a cash payment of $725,892.

It said Hudbay now owned 51% and would become operator.

Rockcliff would retain a 35% carried interest through life-of-mine, provided it contributed its pro-rata share of pre-construction capital.

It had updated Talbot's resource in February to an indicated 2.19 million tonnes at 4.44% copper-equivalent and an inferred 2.44Mt at 2.98% Cu-eq.

"Hudbay's early decision to exercise of its buy-back right on the Talbot property further validates Talbot's potential value," Rockcliff president and CEO Alistair Ross said.

"Rockcliff's shareholders will benefit from Hudbay's experience in mine development and operation, combined with its balance sheet strength, as they lead the Talbot project forward."

Rockcliff is a major landholder in the Snow Lake area and is preparing a preliminary economic assessment for its Tower and Rail deposits.

Its shares (CSE: RCLF) had reached a one-year high last week of 14c. They closed down 4.2% yesterday to 11.5c to value it at $35.4 million (US$26.9 million).

Hudbay (TSX: HBM) also hit a 12-month high last week, of $5.67, and closed down 0.56% to $5.33 to capitalise it at $1.4 billion (US$1.1 billion).