Winnipeg, Manitoba - March 7, 2007 - HudBay Minerals Inc. (TSX: HBM)
(HudBay) today announced that its wholly-owned subsidiary Hudson Bay
Mining and Smelting Co., Limited (HBMS) received a statement of claim
from Callinan Mines Limited ("Callinan") respecting the Net Profits
Interest and Royalty Agreement (the "NPI"). Details on the NPI are
available in the notes to HudBay's 2005 financial statements.
Callinan is seeking declaratory relief, an accounting and an undisclosed
amount of damages alleged to be owing pursuant to the NPI. HBMS
believes it has made all appropriate payments to Callinan and that it
has a good defence to the claim.
HBMS intends to vigorously defend the claim, which is being reviewed by
legal counsel. HudBay does not expect the claim will have any
significant adverse impact on the company. HudBay will not be providing
any further statements in this matter at this time.
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
Fax: (204) 942-8177
Brad.woods@hbms.ca