WINNIPEG, MANITOBA--(CCNMatthews - Feb. 9, 2006) - HudBay Minerals
Inc. (TSX:HBM) (HudBay) announces that its subsidiary, Hudson Bay Mining
and Smelting Co., Limited (HBMS), has completed its previously
announced $25 million credit facility with The Bank of Nova Scotia
(Scotia Capital). The facility, subject to customary conditions, is
guaranteed by HudBay and its Hudson Bay Exploration and Development
Company Limited subsidiary, and is secured by inventory and receivables.
The Bank of Nova Scotia may consent to increasing the credit facility
to $50 million if HBMS satisfies certain conditions.
HudBay also announces that HBMS has repurchased, through the open
market, US$19 million of its 9 5/8% senior secured notes due January 5,
2012. Additionally, HudBay announces that it is in the process of
converting the relationship with its joint venture marketing company to
one of an agency arrangement, whereby HudBay will sell all its products
directly. The debt reduction and conversion of its marketing
arrangements should enhance the company's ability to increase the credit
facility, if required, at a later date.
"Completing the $25 million credit facility enhances HudBay's
financial strength as we look toward future growth," said Peter Jones,
President and CEO of HudBay.
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 owns a zinc oxide production facility in Brampton, Ontario
and the Balmat zinc mine in New York State, which is being re-opened.
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,
fluctuation of foreign exchange rates, imperfection of reserve
estimates, environmental and financing risks, debt and cash
requirements, 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.
Don Bain
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)
don.bain@hbms.ca
www.hudbayminerals.com