Winnipeg, Manitoba - February 22, 2007 - HudBay Minerals Inc. ("HudBay")
(TSX: HBM) today announced that its wholly-owned subsidiary, Hudson Bay
Mining and Smelting Co., Limited ("HBMS"), has completed the covenant
defeasance of HBMS' outstanding 9 5/8% Senior Secured Notes due 2012
(the "Notes"). The covenant defeasance involved the irrevocable deposit
in trust by HBMS with The Bank of New York, as trustee, of
approximately U.S. $3.3 million (notional value U.S. $3.4 million) of
U.S. government securities, such amount being sufficient to pay the
principal of U.S. $2.9 million, and interest and premium on, the
outstanding Notes to the redemption date of January 15, 2009. Pursuant
to the terms of the indenture governing the Notes, the collateral
securing the Notes will be released.
"The defeasance of the remaining Notes marks an important milestone in
our efforts to maximize our financial flexibility," said Peter Jones,
President & CEO. "We have repurchased the Notes in the open market
and through our successful tender offer using free cash flow and now
with the defeasance complete, we are positioned to advance our growth
strategies both organically and through the evaluation and pursuit of M
& A opportunities."
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining company that operates
mines, concentrators and a metal production facility 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 operations in New York state. HudBay is a member of
the S&P/TSX Composite Index.
Forward Looking Information
This news release contains "forward-looking information", within the
meaning of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, statements with respect to
HudBay's growth strategies. Forward-looking information 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 to be materially different from those expressed or implied by
such forward-looking information, including risks associated with the
mining industry such as economic factors, success of exploration
activities, future commodity prices, risks related to acquisitions,
changes in project parameters as plans continue to be refined,
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 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 does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
For further information:
Brad Woods
Director, Investor Relations
Tel: (204) 949-4272
brad.woods@hbms.ca
www.hudbayminerals.com