WINNIPEG, MANITOBA--(CCNMatthews - Aug. 8, 2006) - HudBay Minerals
Inc. (TSX:HBM) (HudBay) announces that it has entered into an exclusive
option agreement pursuant to which HudBay, in its sole discretion, may
acquire 100% of the Jason lead/zinc mineral property (Jason Property) in
the Yukon from MacPass Resources Limited (MacPass), for C$1.0 million.
The
option agreement provides for an initial payment of C$100,000 to
MacPass with the balance payable on exercise of the option to purchase
during a six month due diligence period.
The Jason Property is
subject to a 3% net smelter return (NSR) and HudBay has also entered
into an NSR purchase agreement which allows HudBay to purchase, at any
time, 1.5% of the NSR for C$1.25 million and the remaining 1.5% of the
NSR for C$4.0 million.
The Jason Property is located close to the
Yukon-Northwest Territories border, approximately 400 km east of
Whitehorse and is on the North Canol Road. The Jason Property is close
to HudBay's 100% owned Tom lead/zinc mineral property and the properties
share a common airstrip. Both properties are at an advanced exploration
stage and approximately 30,700 m of diamond drilling, from surface, has
been completed on the Jason Property and approximately 30,500 m from
both surface and underground has been competed at the Tom property.
In
the months ahead, HudBay plans to examine previous work and perform a
technical/scoping study to determine economic production parameters for
the properties.
About HudBay Minerals Inc.
HudBay Minerals
Inc. is an integrated mining company that operates mines, concentrators
and a metal production complex in northern Manitoba and Saskatchewan.
The company 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.
Forward Looking Statements
This
news release contains "forward-looking statements", within the meaning
of applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to
HudBay's plans to undertake certain activities regarding the Jason
Property. Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as "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 state that certain
actions, events or results "may", "could", "would", "might", or "will
be taken", "occur", or "be achieved". Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or
achievements of HudBay, to be materially different from those expressed
or implied by such forward-looking statements, including risks
associated with the mining industry such as economics, government
regulation, environmental and reclamation risks, title disputes or
claims, success of exploration activities, future commodity prices,
costs of production, possible variations in ore reserves, resources,
grade or recovery rates, failure of plant, equipment or processes to
operate as anticipated, accidents, labour disputes, 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
on www.sedar.com. Although HudBay has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking statements, 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 statements. Accordingly, readers should not place
undue reliance on forward-looking statements. HudBay does not undertake
to update any forward-looking statements, except in accordance with
applicable securities laws.
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