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By The Canadian Press

TORONTO - HudBay Minerals Inc. (TSX:HBM.TO - News) says its second-quarter net loss narrowed to $30.4 million compared to a year ago, when it booked a $213 million impairment charge.

The Toronto-based metals miner said that loss amounted to 17 cents per share, compared to $171.9 million, or 97 cents per share in the second-quarter of 2011.

The year-ago quarter included an impairment loss of $212.7 million on the sale of its Fenix project.

The recent quarterly loss included a $32.7-million charge related to junior mining investments.

Revenue fell to $189.9 million from $246.8 million a year earlier affected by provisional pricing adjustments totalling $14.5 million as the price of copper, gold and silver fell during the quarter. Concentrate sale volumes also slipped, as the 2011 results included the drawdown of accumulated excess inventory.

"The results from our operating mines have continued to perform within expectations, which we expect will enable us to meet our 2012 guidance," said David Garofalo, Hudbay's president and chief executive.

The company has plans to spend $704 million on developing its Lalor project near Snow Lake, Man. It has so far spent $277 million and says costs remain on budget. The company expects to commission the concentrator to process ore from Lalor in September.

Silver Wheaton Corp. (TSX:SLW.TO - News) signed a deal last week to acquire the silver and gold production from one Hudbay mine and the silver production from another for US$750 million.

Hudbay will use the money to help fund construction of its Constancia copper mine in Peru that is expected to cost $1.5 billion.

In addition to the deal with Silver Wheaton, Hudbay is also arranging a new US$600 million credit facility from a syndicate of Canadian and international banks to help fund Constancia as well as its Lalor and Reed projects together with $710 million in cash on hand.