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Message: HudBay Closes Sale of Lundin Mining Stake
| May 26, 2009 |
| HudBay Closes Sale of Lundin Mining Stake |
| TORONTO, ONTARIO--(Marketwire - May 26, 2009) - 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. |
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