TORONTO, ONTARIO, May 26, 2009 (MARKETWIRE via COMTEX News Network) --
HudBay Minerals Inc. ("HudBay", "the company") (TSX: HBM) has closed the
previously announced sale of its 16.7 per cent stake in Lundin Mining
Corporation ("Lundin Mining") to GMP Securities L.P. ("GMP"), for cash
proceeds of approximately $236 million, representing a before tax gain
of approximately $100 million.
"The transaction is a significant cash gain for HudBay and further
positions the company to implement its strategic plan, which will be
outlined at the company's AGM on June 19," said Peter R. Jones, HudBay's
chief executive officer.
The sale was conducted pursuant to an agreement between GMP and HudBay
dated May 11, 2009. Notwithstanding the restrictions on HudBay's ability
to sell the shares contained in the subscription agreement dated
November 21, 2008 between Lundin Mining and the company, Lundin Mining
provided its consent to the sale and in connection with such consent
Lundin Mining and HudBay have agreed to:
- terminate all continuing rights and obligations under the previously
announced termination agreement dated February 23, 2009 (other than the
mutual release and the reciprocal standstill covenant that expires on
February 23, 2010) and all continuing rights and obligations of HudBay
and Lundin Mining under the subscription agreement; and
- a mutual release in respect of any and all claims connected with or
arising from the subscription agreement and certain representations and
warranties under the termination agreement.
HudBay Minerals Inc.: Strength to Build the Future
HudBay Minerals Inc. (TSX: HBM) is a Canadian integrated mining company
with assets in North and Central America principally focused on the
discovery, production and marketing of base metals. The company's
objective is to maximize shareholder value through efficient operations,
organic growth and accretive acquisitions, while maintaining its
financial strength. A member of the S&P/TSX Composite Index and the
S&P/TSX Global Mining Index, HudBay is committed to high standards
of corporate governance and sustainability.
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 the potential impact of changing economic
conditions on HudBay's financial results, information regarding the
sale of the Lundin shares, the use of proceeds from the sale of the
Lundin shares, and the company's strategies and future prospects.
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", "understands" or "does not anticipate", or
"believes" or variations of such words and phrases or statements that
certain actions, events or results "will", "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved". Forward-looking
information is based on the views, opinions, intentions 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 anticipated or projected in the
forward-looking information (including the actions of other parties who
have agreed to do certain things and the approval of certain regulatory
bodies).
Many of these assumptions are based on factors and events that are not
within the control of HudBay and there is no assurance they will prove
to be correct. Factors that could cause actual results or events to vary
materially from results or events anticipated by such forward-looking
information include risks associated with the mining industry such as
economic factors (including future commodity prices, currency
fluctuations and energy prices), failure of plant, equipment, processes
and transportation services to operate as anticipated, dependence on key
personnel and employee relations, environmental risks, government
regulation, actual results of current exploration activities, possible
variations in ore grade or recovery rates, permitting timelines, capital
expenditures, reclamation activities, land titles, and social and
political developments and other risks of the mining industry, as well
as those risk factors discussed in the company's Annual Information Form
dated March 30, 2009, which risks may cause actual results to differ
materially from any forward-looking statement.
Although HudBay has 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
undertakes no obligation to update forward-looking information if
circumstances or management's estimates or opinions should change except
as required by applicable securities laws, or to comment on analyses,
expectations or statements made by third parties in respect of HudBay,
its financial or operating results or its securities. 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.
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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