TORONTO, ONTARIO, Dec 22, 2009 (Marketwire via COMTEX News Network)
-- HudBay Minerals Inc. ("HudBay", "the company") (TSX:HBM) today
announced that, through a wholly-owned subsidiary, it has entered into
an option agreement with Halo Resources Ltd. ("Halo") (TSX VENTURE:HLO).
The agreement allows HudBay to earn up to a 67.5% joint venture
interest in Halo's Cold and Lost properties in the Sherridon VMS
District in Manitoba, located approximately 110 kilometers by road from
HudBay's facilities in Flin Flon.
"We are pleased to be entering
into this arrangement with Halo," said W. Warren Holmes, HudBay's
executive vice-chairman. "If exploration results continue to be
successful, this is an opportunity that could be quickly developed into
an additional source of zinc feed for our Flin Flon plant."
HudBay
can acquire a 51% interest by making aggregate cash payments to Halo
of $800,000 and completing work expenditures on the property of $1.35
million, in each case within the next two years. The Company can
increase its interest to 60% by funding and completing a feasibility
study within the next four years and paying $2 million in cash to Halo.
It may further increase its interest to 67.5% by paying Halo an
additional $2.5 million prior to commencement of commercial production.
HudBay will act as operator of the joint venture and will purchase all ore produced by the joint venture.
Descriptions
of the Cold and Lost deposits are contained in Halo's NI 43-101
Technical Report entitled "Technical Report on the Sherridon VMS
Project, North Central Manitoba, Canada" dated September 15, 2008 and
available at www.sedar.com.
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 and its attachments contain "forward-looking information"
within the meaning of applicable securities laws. Forward looking
information includes but is not limited to information concerning the
option agreement with Halo Resources Ltd. 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.
(HBM-G)
SOURCE: HudBay Minerals Inc.
HudBay Minerals Inc.
John Vincic
Vice President, Investor Relations and
Corporate Communications
(416) 362 0615
Email: john.vincic@hudbayminerals.com
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