Winnipeg, Manitoba – March 23, 2007 – HudBay Minerals Inc. (TSX: HBM)
(HudBay) today announced that its wholly-owned subsidiary, Hudson Bay
Exploration and Development Company Limited (HBED), has entered into
agreements with Rockcliff Resources Inc. (Rockcliff) providing
Rockcliff, subject to it obtaining the requisite regulatory approval,
with separate options respecting seven properties located in the Snow
Lake area of the Flin Flon Greenstone Belt, in Manitoba.
These properties total approximately 15,847 hectares and relate to the
Rail, Reed, Kof and Sylvia copper and zinc base metal deposits, along
with additional properties with targets prospective for copper and zinc
base metal deposits.
In order for Rockcliff to acquire 100% interests in all of these
properties, it must pay HBED an aggregate of $2.06 million in
escalating, incremental payments and incur aggregate, escalating
exploration expenditures totaling $9.8 million over a four-year period.
If Rockcliff exercises any one or more of these options, HBED will:
- retain a 2% Net Smelter Return Royalty in each of such properties respecting which the option has been exercised;
- have a buy back right to acquire a 55% interest in each
property by paying to Rockcliff 200% of its option payments and spending
200% of Rockcliff's work expenditures in such property; and
- have the right to further increase its interest to 65% (an
additional 10%) by bringing the property to commencement of commercial
production and by financing Rockcliff's 35% portion, with such costs
recovered from Rockcliff's share of profits realized from future
production.
"Our agreements with Rockcliff continue to build on our aggressive 2007
exploration program," said Peter Jones, HudBay President & CEO. "In
addition to our $45.2 million exploration activities this year, our
agreements with Rockcliff, along with the other previously announced
option agreements, will significantly leverage our exploration
opportunities in the prolific Flin Flon Greenstone Belt."
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.
For further information:
Brad Woods
Director, Investor Relations
Tel: (204) 949-4272
Brad.woods@hbms.ca
www.hudbayminerals.com
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, information with respect to
future exploration activities. Generally, forward-looking information
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", "will", "will be taken", "occur", or "be achieved".
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
economics, future commodity prices, results of exploration activities,
government regulation, environmental and reclamation risks, timely and
cost effective access by HudBay and option holders to sufficient
capital, receipt of requisite regulatory approvals, risks related to
option agreements, conclusions of economic evaluations, changes in
project parameters as plans continue to be refined 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.