TORONTO, ONTARIO--(CCNMatthews - Dec. 10, 2004) - NOT FOR DISTRIBUTION
TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
ONTZINC Corporation (TSX VENTURE:OTZ) (the "Company") is pleased to
announce that the pricing has been determined for the proposed offering
of subscription receipts of the Company. Taking into account the full
exercise of the over-allotment option, subscription receipts will be
offered for an aggregate amount of up to approximately $143.8 million.
Each subscription receipt will be effectively priced at $0.075. Upon the
completion of the Company's acquisition of Hudson Bay Mining and
Smelting Co., Limited ("HBMS") from Anglo American International, S.A.,
each subscription receipt will be automatically exchanged for one common
share of the Company and one-half of one common share purchase warrant.
Each whole warrant will entitle the holder thereof to purchase one
common share of the Company at an effective price of $0.105 at any time
over the five years following the closing of the offering. The offering
is being made on a best efforts basis and is being led by GMP Securities
Ltd. and involves Canaccord Capital Corporation, Haywood Securities
Inc., Orion Securities Inc., Harris Partners Limited, McFarlane Gordon
Inc. and Northern Securities Inc. The offering of subscription receipts
is subject to the Company entering into a definitive agency agreement
and the filing of a final prospectus.
In connection with the acquisition of HBMS and the associated offering
of subscription receipts, the board of directors of the Company have
determined that it is appropriate for the Company to consolidate its
issued and outstanding common shares on a 30 for one basis. At the
special meeting of shareholders of the Company held on December 8, 2004,
the shareholders approved the consolidation of the common shares of the
Company on the basis of one new common share for up to 40 old common
shares.
Shareholders' Meeting
At the special meeting of shareholders, the shareholders of the Company
also approved resolutions in respect of the following matters:
- the ratification and adoption of the Shareholders' Rights Plan to
ensure all shareholders are treated fairly in any transaction involving
a change of control of the Company;
- a name change of the Company to Hudbay Minerals Inc.;
- the election of Messrs. Norman Anderson, James W. Ashcroft, Ian Conn
and Peter Jones as additional directors, upon the completion of the
acquisition of HBMS; and
- a reduction of the stated capital of the Company by $21,988,639.
ONTZINC Corporation is a mineral exploration and development company.
Its strategy is to focus on the acquisition of high quality, North
American mining assets at an advanced stage of development. ONTZINC
currently owns and operates four mineral projects: the Balmat Mine in
the State of New York, U.S.A.; the Gays River Mine in the Province of
Nova Scotia, Canada; the Southwestern Ontario Project in the Province of
Ontario, Canada; and the San Antonio Project in Chile.
This press release is not an offer of securities for sale in the United
States. The securities have not been and will not be registered under
the United States Securities Act of 1933, as amended. Securities may not
be offered or sold in the United States absent registration or an
exemption from registration. Any public offering of securities that may
be made in the United States will be made by means of a prospectus that
may be obtained from the issuer and that will contain detailed
information about the company and management, as well as financial
statements.
Shares Outstanding: 242,802,415
FOR FURTHER INFORMATION PLEASE CONTACT:
ONTZINC Corporation
Peter George
(416) 913-7601
or
ONTZINC Corporation
Doug Scharf
(416) 913-7601
www.ontzinc.ca
The TSX Venture Exchange has neither
approved nor disapproved the
contents of this press release.