WINNIPEG, MANITOBA--(CCNMatthews - March 20, 2006) - HudBay Minerals
Inc. (TSX:HBM) (HudBay) announced today that its subsidiary, Hudson Bay
Exploration and Development Company Limited (HBED) has entered into
Option Agreements with Halo Resources Ltd. (Halo) for claims held by
HudBay in the Sherridon area of the Flin Flon Greenstone Belt in
northern Manitoba.
The Option Agreements provide for Halo to acquire, subject to
certain exploration expenditures and payments to HudBay, a 100% interest
in 24 claims and a mineral lease, covering 3,478 hectares in the
Sherridon area. The Option Agreements are effective for between three
and five years and additionally, provide HudBay with back-in rights and a
retained royalty. HBED has also agreed to provide Halo access to
certain historical exploration data for approximately 33,170 hectares of
the Sherridon area.
HudBay plans to spend $30 million on exploration in the Flin Flon
Greenstone Belt over three years as part of its growth plans. The Option
Agreements with Halo will effectively increase exploration expenditures
in the Flin Flon Greenstone Belt, above those planned by HudBay.
Peter Jones, President and CEO of HudBay, said, "the Option
Agreements will increase exploration spending in the Flin Flon
Greenstone Belt and any discoveries could be beneficial to both
parties."
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining and metal producing
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 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, 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,
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) 942-9177 (FAX)
don.bain@hbms.ca
www.hudbayminerals.com