WINNIPEG, MANITOBA--(CCNMatthews - Dec. 16, 2005) - HudBay Minerals Inc.
(TSX:HBM) (HudBay) announces that it is has entered into a letter of
intent to sell its Gays River lead and zinc mineral property to Acadian
Gold Corporation for $7.5 million.
The property is a previous producer of lead and zinc in concentrate
and has a concentrator located at the site. The mineral property is
located approximately 50 km north of Halifax, Nova Scotia.
The potential sales transaction with Acadian Gold Corporation of
Halifax is subject to the satisfaction of certain conditions, including
the provision of certain cash deposits, board approvals, the purchaser
completing satisfactory financing agreements, due diligence, the
entering into of a definitive sale and purchase agreement and receipt of
all necessary regulatory approvals.
If completed, the sale is scheduled to close in the second quarter of 2006.
"The Gays River property is remote from other HudBay assets and the
Company is focussed on re-establishing production at its Balmat Zinc
Mine project as well as other growth opportunities," said Peter Jones
President and CEO of HudBay in commenting on the potential sale. "Gays
River could offer another mining company a production opportunity, as it
has a concentrator already at the site."
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining and metal producing
company that operates mines and concentrators in northern Manitoba and
Saskatchewan and a metal processing complex in Flin Flon, Manitoba. The
company also operates a zinc oxide production facility in Brampton,
Ontario and owns the former producing Balmat zinc mine in New York State
which is being reopened.
Forward Looking Information
Certain information regarding HudBay set forth in this document,
including management's assessment of HudBay's future plans and
operations, contains forward looking statements that involve substantial
known and unknown risks and uncertainties. These forward looking
statements are subject to numerous risks and uncertainties, some of
which are beyond HudBay's and management's control, including but not
limited to, the impact of general economic conditions, industry
conditions, fluctuation of commodity prices, acquisition risks, risks
associated with obtaining required regulatory approvals, fluctuation of
foreign exchange rates, imperfection of reserve estimates, environmental
and financing risks, industry competition and performance or
achievement could differ materially from those expressed in, or implied
by, these forward looking statements and, accordingly, no assurance can
be given that any of the events anticipated to occur or transpire from
the forward-looking statements will provide any benefits to HudBay.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Tom Goodman
Vice President, Human Resources and Technical Services
(204) 687-2380
(204) 942-8177 (FAX)
tom.goodman@hbms.ca
www.hudbayminerals.com