Toronto, Ontario - January 26, 2011 - HudBay Minerals Inc.
("HudBay", the "company") (TSX/NYSE: HBM) today announced that it has
entered into a subscription agreement with Copper Reef Mining
Corporation ("Copper Reef") (CNSX: CZC) providing for the sale to HudBay
on a private placement basis of 7,000,000 units (the "Units") of Copper
Reef at a purchase price of C$0.15 per Unit for total consideration of
C$1,050,000. Each Unit consists of one common share of Copper Reef (a
"Share") issued as a "flow-through share" within the meaning of the Income Tax Act
(Canada) and one Share purchase warrant of Copper Reef (a "Warrant").
Each Warrant will entitle HudBay to acquire one Share at an exercise
price of C$0.15 at any time during the six months following closing of
the transaction.
Upon closing of the subscription, which is subject to certain
customary conditions, HudBay will own and have control over 7,000,000
Shares (approximately 7.9% of the issued and outstanding Shares), and
will own 7,000,000 Warrants which, together with the Shares, represents
approximately 14.7% of the issued and outstanding Shares on a
partially-diluted basis.
The investment in the Shares and Warrants is being made to assist in
the financing of exploration on a mineral property held by Copper Reef
near HudBay's 777 mine in Flin Flon, Manitoba.
HudBay Minerals Inc.
HudBay Minerals Inc. (TSX/NYSE: 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 with its
corporate offices at 1 Adelaide Street East, suite 2501, Toronto,
Ontario. 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
Certain of the statements made and information contained herein may
contain forward-looking information within the meaning of applicable
Canadian securities laws. Forward-looking information includes, but is
not limited to, information concerning the anticipated closing of the
transaction contemplated by the subscription agreement referred to in
the news release.
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. 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.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
For further information, please contact:
HudBay Minerals Inc.
John Vincic
Vice President, Investor Relations and Corporate Communications
(416) 362 0615
Email: john.vincic@hudbayminerals.com