WINNIPEG, MANITOBA--(CCNMatthews - Dec. 7, 2006) - HudBay Minerals
Inc.'s (HudBay") (TSX:HBM) today announced that the pricing terms of the
tender offer by its wholly-owned subsidiary, Hudson Bay Mining and
Smelting Co., Limited ("HBMS"), for any and all of HBMS' outstanding 9
5/8% Senior Secured Notes due 2012 (the "Notes") have been determined.
Global Bondholder Services Corporation, the depositary for the tender
offer, has also advised HBMS that, as of 5:00 p.m., New York City time,
on December 6, 2006 (the "Consent Date"), US$42.24 million aggregate
principal amount of the Notes had been validly tendered and not
withdrawn and consents delivered and not revoked, representing
approximately 94% of the Notes outstanding. The tender offer remains
open and is scheduled to expire at 12:00 a.m., New York City time, on
December 20, 2006 (the "Expiration Date").
The total consideration for the Notes tendered and accepted for
purchase was determined as of 10:00 a.m., New York City time, on
December 7, 2006 by reference to a fixed spread of 50 basis points over
the 3 1/4% U.S. Treasury Security due January 15, 2009, pursuant to the
terms and subject to the conditions set forth in HBMS' Offer to Purchase
and Consent Solicitation Statement, dated November 22, 2006. Assuming
an early payment date of December 8, 2006, the total consideration for
each US$1,000 principal amount of Notes validly tendered and not
withdrawn at or prior to the Consent Date, is US$1,133.30, which
includes a consent payment of US$30 per US$1,000 principal amount of
Notes. Holders whose Notes are validly tendered after the Consent Date
but prior to the Expiration Date will be eligible to receive the tender
offer consideration, determined as set forth in the Offer to Purchase
and Consent Solicitation Statement, but will not be eligible to receive
the consent payment of US$30 per US$1,000 principal amount of Notes.
Closing of the tender offer is subject to customary conditions set forth
in the Offer to Purchase and Consent Solicitation Statement.
HBMS has obtained the required consents to allow it to amend the
indenture governing the Notes to eliminate most of the restrictive and
affirmative covenants and certain events of default. HBMS intends to
promptly execute a supplemental indenture containing such proposed
amendments, which will become effective as set forth in the Offer to
Purchase and Consent Solicitation Statement.
HBMS has engaged Credit Suisse Securities (USA) LLC to act as dealer
manager for the tender offer and solicitation agent for the consent
solicitation.
Questions regarding the tender offer and consent solicitation should be directed to:
Credit Suisse Securities (USA) LLC at (800) 820-1653 or (212) 538-0652.
Requests for documentation should be directed to:
Global Bondholder Services Corporation at (866) 470-4300 or (212)
430-3774, the information agent and depositary for the tender offer and
consent solicitation.
The tender offer and consent solicitation is being made solely by
means of the tender offer documents. Under no circumstances shall this
press release constitute an offer to purchase or the solicitation of an
offer to sell the Notes or any other securities of HBMS or HudBay. It
also is not a solicitation of consents to the proposed amendments to the
indenture. No recommendation is made as to whether holders of the Notes
should tender their Notes.
About HudBay Minerals Inc.
HudBay is an integrated mining company that operates mines,
concentrators and a metal production complex in northern Manitoba and
Saskatchewan. HudBay also owns a zinc oxide production facility in
Ontario, the White Pine copper refinery in Michigan, and the Balmat zinc
mine in New York state.
HudBay is a member of the S&P/TSX Composite Index.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information", within the
meaning of applicable securities legislation. Forward-looking
information includes, but is not limited to, statements with respect to
HBMS' tender offer for any and all of HBMS' outstanding Notes and
matters related thereto. Often, but not always, forward-looking
information can be identified by the use of forward-looking words like
"plans", "expects", or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes" or variations of such words and
phrases or statements that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be
achieved". Forward-looking information is based on the opinions and
estimates of management as of the date such information is provided and
is subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of HudBay and HBMS to be materially different from those
expressed or implied by such forward-looking information, including but
not limited to risks associated with the mining industry such as
economics, requirements for additional capital, capital expenditures,
conclusions of economic evaluations as well as those factors discussed
in the section entitled "Risk Factors" in HudBay's Annual Information
Form for the year ended December 31, 2005, available at www.sedar.com, which is also contained in HudBay's Annual Report on Form 40-F, available at www.sec.gov.
Although HudBay and HBMS have attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such information. Accordingly, readers should
not place undue reliance on forward-looking information. HudBay and HBMS
do not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Brad Woods
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)
brad.woods@hbms.ca
www.hudbayminerals.com