TORONTO, ONTARIO, Dec 11, 2008 (Marketwire via COMTEX News Network)
--
HudBay Minerals Inc. (TSX:HBM) ("HudBay") today announced completion of
the previously announced private placement by Lundin Mining Corporation
(TSX:LUN)(NYSE:LMC)(OMX:LUMI) ("Lundin Mining").
Pursuant to the
private placement, HudBay acquired 96,997,492 common shares in the
capital of Lundin Mining, representing approximately 19.9% of Lundin
Mining's outstanding common shares after issuance, at a price of Cdn.
$1.40 per share, for aggregate gross proceeds to Lundin Mining of
approximately Cdn. $135.8 million. Lundin Mining will use the proceeds
for general corporate purposes. As a result of the completion of the
private placement, HudBay and Lundin Mining have terminated their
previously announced loan agreement.
HudBay remains committed to
completing the acquisition of Lundin, which will provide the company's
shareholders with outstanding producing assets in stable
jurisdictions and excellent development opportunities while preserving
superior balance sheet strength and providing strong cash flow.
HudBay encourages shareholders to refer to the websites of HudBay (www.hudbayminerals.com) and Lundin (www.lundinmining.com) for accurate, factual information about their respective operations and the proposed acquisition of Lundin.
ABOUT HUDBAY MINERALS INC.
HudBay
is a leading base metals mining company with assets in North and
Central America. The company is investing for the future in one of the
most ambitious exploration programs in Canada, targeting its 400,000
hectare exploration territory in the Flin Flon Greenstone Belt. An
integrated mining company, HudBay operates zinc and copper mines,
concentrators and
metal production facilities in northern Manitoba and Saskatchewan, a
zinc oxide production facility in Ontario, the White
Pine Copper Refinery in Michigan, and owns the Fenix nickel project in
Guatemala. In addition to its primary products, the Company also
produces gold, silver and zinc oxide. HudBay is a member of the
S&P/TSX Composite Index and the S&P/TSX Global Mining Index.
FORWARD-LOOKING INFORMATION
This
news release contains "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information includes, but
is not limited to, information concerning the proposed business
combination between HudBay and Lundin and matters relating thereto.
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 statements that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be
achieved". Forward-looking information is based on the opinions and
estimates of management at the date the information is made, and is
based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
information. Assumptions upon which such forward-looking information is
based include, without limitation, that the shareholders of Lundin will
approve the Transaction, that all required third party, court,
regulatory and governmental approvals to the Transaction will be
obtained and all other conditions to completion of the Transaction will
be satisfied or waived. Many of these assumptions are based on factors
and events that are not within the control of HudBay and Lundin and
there is no assurance they will prove to be correct. Factors that could
cause actual results to vary materially from results anticipated by such
forward-looking information include changes in market conditions,
variations in ore grade or recovery rates, risks relating to
international operations, fluctuating metal prices and currency exchange
rates, changes in project parameters, the possibility of project cost
overruns or unanticipated costs and expenses, labour disputes and other
risks of the mining industry, failure of plant, equipment or processes
to operate as anticipated, the business of the companies not being
integrated successfully or such integration proving more difficult, time
consuming or costly than expected as well as those risk factors
discussed in the Annual Information Form for the year ended December
31, 2007 for each of HudBay and Lundin available at www.sedar.com, and the Annual Report on Form 40-F for the year ended December 31, 2007 of Lundin available at www.sec.gov.
Although HudBay and Lundin have attempted to identify important factors
that could cause actual actions, events or results to differ materially
from those described in forward-looking information, there may be other
factors that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. HudBay and Lundin undertake no obligation to update
forward-looking information if circumstances or management's estimates
or opinions should change except as required by applicable securities
laws. The reader is cautioned not
to place undue reliance on forward-looking information.
This news
release and the information contained herein does not constitute an
offer of securities for sale in the United States and securities may not
be offered or sold in the United States absent registration or
exemption from registration.
(HBM-G)
SOURCE: HudBay Minerals Inc.
HudBay Minerals Inc.
Annemarie Brissenden
Manager, Investor Relations
(416) 362-0615
Email: annemarie.brissenden@hudbayminerals.com
Website: www.hudbayminerals.com
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