TORONTO, ONTARIO--(Marketwired - Jan. 17, 2014) - HudBay Minerals Inc. ("Hudbay", the "company") (TSX:HBM)(NYSE:HBM) today announced that it has completed the sale of its 51% interest in the Back Forty Project in Michigan's Upper Peninsula to its joint venture partner Aquila Resources Inc. (TSX:AQA). The sale was completed pursuant to a previously announced purchase agreement dated November 7, 2013. As partial consideration for the sale of its interest, Hudbay received 18,650,193 common shares of Aquila based on a price of $0.13 per share, representing approximately 10.2% of the issued and outstanding shares. Hudbay is also entitled to milestone payments tied to the development of the Back Forty Project and a net smelter return royalty on a portion of the Back Forty property.
Including the shares issued in the transaction, Hudbay now owns and controls 33,017,758 Aquila common shares, representing approximately 18.0% of the issued and outstanding shares.
Hudbay may in the future increase or decrease its ownership of securities of Aquila from time to time depending upon the business and prospects of Aquila, future market conditions and Hudbay's investment objectives.
For further information, including a copy of the report required to be filed by Hudbay in accordance with applicable Canadian securities laws, contact Hudbay at the address below.
This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes information that relates to, among other things, Hudbay's objectives, strategies, and intentions and future financial and operating performance and prospects.
Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Hudbay at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Hudbay identified and were applied by it in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to, no significant and continuing adverse changes in general economic conditions or conditions in the financial markets.
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), risks related to the transaction and the future development and operation of the Back Forty Project and risks related to Aquila. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
Hudbay (TSX:HBM)(NYSE:HBM) is a Canadian integrated mining company with assets in North and South America principally focused on the discovery, production and marketing of base and precious metals. Hudbay'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. Further information about Hudbay can be found on www.hudbayminerals.com.