TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA, Jun 27, 2008
(Marketwire via COMTEX News Network) --
HudBay Minerals Inc. ("HudBay") (TSX:HBM) and Skye Resources Inc.
("Skye") (TSX:SKR) are pleased to announce they have closed the private
placement announced on June 23, 2008.
HudBay has acquired
12,679,266 common shares of Skye at a price of C$7.51 per share for
total gross proceeds to Skye of approximately C$95.2 million,
representing approximately 19.9% of Skye's outstanding common shares.
These proceeds will be used to immediately ramp up the full engineering,
procurement and construction activities at the Fenix Project, including
the reactivation of long lead time equipment orders that are presently
suspended.
As announced on June 23, 2008, the two companies also
agreed to combine their respective businesses (the "Transaction"). The
private placement financing was not conditional on completion of the
Transaction. The Transaction, which will be structured as a Plan of
Arrangement under the Business Corporations Act (British Columbia), is
subject to Skye obtaining the required shareholder approval at a special
shareholders' meeting of Skye and to the receipt of court and all
necessary regulatory approval.
About HudBay Minerals Inc.
HudBay
Minerals Inc. is a leading Canadian base metals mining company with a
focus on the discovery and production of zinc and copper metal. 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. As an integrated
mining company, HudBay operates 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 the Balmat zinc mine in New York state. HudBay is a
member of the S&P/TSX Composite Index and the S&P/TSX Global
Mining Index.
About Skye Resources Inc.
Skye's principal
asset is the world class Fenix Nickel Project (the "Fenix Project") in
Guatemala, which includes 41.4 million tonnes of reserves. Skye acquired
the rights to the Fenix Project in December 2004 and has completed a
feasibility study for a ferro-nickel project using proven conventional
smelting technology. Environmental and construction permits for the
project have been received, basic engineering is complete, detailed
engineering is approximately 50% complete and Skye is preparing to
initiate construction.
(HBM-G)
Cautionary Notice: This
news release contains "forward-looking information" within the meaning
of applicable Canadian securities legislation and United States
securities laws. Forward-looking information includes, but is not
limited to, information concerning the proposed business combination
between HudBay and Skye 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. Many of these assumptions are based on
factors and events that are not within the control of HudBay or Skye 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 risk factors discussed in the
Annual Information Form for the year ended December 31, 2007 for each of
HudBay and Skye available at www.sedar.com.
Although HudBay and Skye 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 Skye 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.
These securities have not been and will not be
registered under the United States Securities Act of 1933, as amended,
or any state securities law, and may not be offered or sold in the
United States unless an exemption from registration is available.
Key
assumptions, parameters and methods used to estimate the mineral
resources with respect to Skye and the Fenix Project are as set out in
the Technical Report on an Update to the Fenix Project, Izabal,
Guatemala, dated September 15, 2007 and its Addendum Report dated
October 25, 2007
filed at www.sedar.com on September 18, 2007 and October 26, 2007, respectively.
SOURCE: HudBay Minerals Inc.
HudBay Minerals Inc.
Brad Woods
Director, Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website: www.hudbayminerals.com
Skye Resources Inc.
Cindy Burnett
Vice President, Investor Relations
(604) 648-4133
Email: cburnett@skyeresources.com
Website: www.skyeresources.com
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