WINNIPEG, MANITOBA--(CCNMatthews - April 10, 2006) - HudBay Minerals
Inc. (TSX:HBM) (HudBay) announced today that it has entered into an
agreement with a syndicate of investment dealers led by GMP Securities
L.P., for the sale of 1.46 million flow-through common shares at a price
of $13.75 per share on an underwritten private placement basis for
aggregate gross proceeds of approximately $20 million.
Proceeds from the private placement will be used for exploration and
development on HudBay's Canadian properties. The financing continues
and expands HudBay's ongoing exploration program in the Flin Flon
greenstone belt as well as at its other exploration property holdings.
The syndicate is comprised of Desjardins Securities Inc., Dundee
Securities Corporation, TD Securities Inc., Wellington West Capital
Markets Inc., Canaccord Capital Corporation, Orion Securities Inc. and
Paradigm Capital Inc.
The financing is subject to certain conditions, including receipt of
all necessary regulatory approvals, including the Toronto Stock
Exchange. Closing is expected to occur on or about April 25, 2006.
"We are very pleased that this financing will allow our aggressive
exploration program in the Flin Flon greenstone belt to continue as
planned and additionally provide funds for exploration on our
exploration lands in Ontario, the Yukon and elsewhere in Canada," said
Peter R. Jones, President and CEO of HudBay.
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining and metal company that
operates mines and concentrators in northern Manitoba and a metal
production complex in Flin Flon, Manitoba. The company also owns a zinc
oxide production facility in Brampton, Ontario, a copper refinery in
Michigan and the Balmat zinc mine in New York State, which is being
reopened.
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, the availability
or advisement of spending exploration funds, industry conditions,
fluctuation of commodity prices, risks related to the integration of
acquisitions, fluctuation of foreign exchange rates, imperfection of
mineral reserve and mineral resource estimates, estimates of land area
held, seasonally variations and ease of access for exploration,
suitability of weather for low cost exploration, financing risks,
availability of diamond drilling and electromagnetic equipment
especially during periods of high demand in the mining industry,
commodity prices, risks associated with exploration, development and
mining, 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.
Don Bain
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)
don.bain@hbms.ca
www.hudbayminerals.com