WINNIPEG, MANITOBA--(CCNMatthews - Oct. 11, 2005) - HudBay Minerals
Inc. (TSX:HBM) (HudBay) announces that, through its wholly owned
subsidiary Hudson Bay Mining and Smelting Co., Limited (HBMS), it
intends to acquire 100% ownership of White Pine Copper Refinery Inc.
(White Pine), a Michigan-based copper refinery, by exercising an option
held by its joint venture marketing company Considar Metal Marketing
Inc. (CMM).
White Pine has processed the copper anode produced by HBMS into
refined copper cathode for a number of years and this will continue
after the acquisition.
"The White Pine acquisition will be a further step in the vertical
integration of our operations," says Peter Jones, President and Chief
Executive Officer of HudBay. "White Pine will provide us with secure
refining capacity, a reduction in unit cost of production and the
opportunity for additional margin on copper sales."
The acquisition is expected to close in late 2005 or early 2006. The
purchase price to be paid for White Pine is US$13 million, subject to
certain adjustments.
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 evaluated for re-opening.
Forward Looking Statements
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, risks related to the
integration of acquisitions, fluctuation of foreign exchange rates,
imperfection of reserve estimates, environmental risks, industry
competition, availability of qualified personnel and management, timely
and cost effective access to sufficient capital from internal and
external sources. HudBay's actual results, 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