TORONTO — HudBay Minerals Inc. is citing a proxy advisory firm's recommendation that shareholders reject a proposal to replace the board of directors.

The base-metal miner's board, facing a March 25 vote, said Friday that San Francisco-based Glass Lewis & Co. is advising against the resolution put forward by SRM Global Master Fund Limited Partnership.

Friday's release accused SRM of “half-truths, innuendo and selective disclosure of the facts to further mislead HudBay's shareholders.” For example, the board said, SRM criticizes HudBay's acquisition of Skye Resources Inc., even though SRM supported the transaction at the time.

It quoted Glass Lewis as being “concerned that the replacement of the entire board is a drastic step that could disrupt the board and/or management's operations, depriving the company of much-needed leadership amid a major financial downturn.”

Glass Lewis also said that existing management “should be given the benefit of the doubt,” while SRM “has failed to outline a substantial strategic plan for improvement” and its stake in HudBay entitles it to no more than two seats on the eight-member board.

“This independent recommendation reaffirms our belief that we have the right strategy to create value for all of our shareholders,” stated Colin Benner, who became HudBay's interim chief executive officer Tuesday with the resignation of Allen Palmiere.

SRM, a Monaco-based hedge fund which is HudBay's largest shareholder with 11 per cent of the company, had been agitating to oust Mr. Palmiere in addition to proposing a new slate of directors following the collapse of HudBay's proposed merger with Lundin Mining Corp.