Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX:HBM) (NYSE:HBM) announced today that its wholly owned
subsidiary, HudBay Peru S.A.C., has entered into the following
agreements to acquire mining properties in southern Peru near its
Constancia mine: (i) an option agreement with a private Peruvian
consortium to earn a 100% interest in the Caballito (formerly
Katanga) and Maria Reyna mining properties; and (ii) an agreement
to acquire from Panoro Minerals Ltd. 100% of the Kusiorcco mining
properties.
- The Caballito property, located approximately three kilometers
northwest of Constancia, is a 120-hectare (297-acre) concession
block and is the site of the former Katanga mine, which was in
intermittent copper oxide production from the early 1900s to the
early 1990s.
- The Maria Reyna property, located within ten kilometers of
Constancia, is a 5,850-hectare (14,456-acre) concession block.
Diamond drilling by a previous optionee of the Maria Reyna property
resulted in a copper skarn-porphyry discovery. Geophysical surveys
and geological mapping have also been conducted on the property and
the area remains very prospective for additional discoveries.
- The Kusiorcco property, located within seven kilometers of
Constancia, is a 3,962-hectare (9,790-acre) concession block nearby
the Caballito and Maria Reyna properties.
Hudbay is commencing permitting, community
relations and technical activities required to access and conduct
drilling activities on the concessions and expects to provide
further details on its exploration plans for these properties in
due course. These mineral properties are situated within the
regional mineralization trend of the Andahuaylas-Yauri belt and
provide Hudbay with a large, contiguous block of mineral rights to
explore for mineable deposits within trucking distance of the
Constancia processing facility. The appendix attached to this news
release highlights the location of the acquired mining properties
relative to Hudbay’s Constancia mine and the Pampacancha
deposit.
Forward-Looking Information
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. All information
contained in this news release, other than statements of current
and historical fact, is forward-looking information. Often, but not
always, forward-looking information can be identified by the use of
words such as “plans”, “expects”, “budget”, “guidance”,
“scheduled”, “estimates”, “forecasts”, “strategy”, “target”,
“intends”, “objective”, “goal” “understands”, “anticipates” and
“believes” (and variations of these or similar words) and
statements that certain actions, events or results “may”, “could”,
“would”, “should”, “might” “occur” or “be achieved” or “will be
taken” (and variations of these or similar expressions). All of the
forward-looking information in this news release is qualified by
this cautionary note.
Forward-looking information includes, but is not
limited to, statements related to, among other things, Hudbay’s
objectives, strategies, and intentions, its future financial and
operating performance and prospects and its expectations as to the
exploration and potential of the mining properties it has acquired
in Peru. 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 Hudbay in drawing
conclusions or making forecasts or projections set out in the
forward-looking information include, but are not limited to, the
execution of Hudbay’s business and growth strategies, including the
success of its strategic investments and initiatives; the
availability of additional financing, if needed; the ability to
complete project targets on time and on budget and other events
that may affect Hudbay’s ability to develop its projects; and 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 schedule for mining
the Pampacancha deposit (including the timing and cost of acquiring
the required surface rights), risks related to political or social
unrest or change, risks in respect of aboriginal and community
relations, rights and title claims, operational risks and hazards,
including unanticipated environmental, industrial and geological
events and developments and the inability to insure against all
risks, failure of plant, equipment, processes, transportation and
other infrastructure to operate as anticipated, compliance with
government and environmental regulations, including permitting
requirements and anti-bribery legislation, depletion of Hudbay’s
reserves, volatile financial markets that may affect Hudbay’s
ability to obtain additional financing on acceptable terms, the
failure to obtain required approvals or clearances from government
authorities on a timely basis, uncertainties related to the
geology, continuity, grade and estimates of mineral reserves and
resources, and the potential for variations in grade and recovery
rates, uncertain costs of reclamation activities, Hudbay’s ability
to comply with its pension and other post-retirement obligations,
Hudbay’s ability to abide by the covenants in its debt instruments
and other material contracts, tax refunds, hedging transactions, as
well as the risks discussed under the heading “Risk Factors” in
Hudbay’s most recent annual information form.
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.
About Hudbay
Hudbay (TSX:HBM) (NYSE:HBM) is an
integrated mining company primarily producing copper concentrate
(containing copper, gold and silver), zinc concentrate and zinc
metal. With assets in North and South America, the company is
focused on the discovery, production and marketing of base and
precious metals. Directly and through its subsidiaries, Hudbay owns
four polymetallic mines, four ore concentrators and a zinc
production facility in northern Manitoba and Saskatchewan (Canada)
and Cusco (Peru), and a copper project in Arizona (United States).
The company’s growth strategy is focused on the exploration and
development of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to become a top-tier operator of long-life,
low-cost mines in the Americas. Hudbay’s mission is to create
sustainable value through the acquisition, development and
operation of high-quality and growing long-life deposits in
mining-friendly jurisdictions. The company is governed by the
Canada Business Corporations Act and its shares are listed under
the symbol “HBM” on the Toronto Stock Exchange, New York Stock
Exchange and Bolsa de Valores de Lima. Hudbay also has warrants
listed under the symbol “HBM.WT” on the Toronto Stock Exchange and
“HBM/WS” on the New York Stock Exchange. Further information about
Hudbay can be found on www.hudbay.com.
For further information, please contact:
Carla NawrockiDirector, Investor Relations(416)
362-7362carla.nawrocki@hudbay.com
Appendix
The below map highlights the location of the
acquired mining properties relative to Hudbay’s Constancia mine and
the Pampacancha deposit. The map is also available on Hudbay’s
website at www.hudbayminerals.com/files/PeruMap.pdf.
A photo accompanying this announcement is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/37b1b962-076f-453a-ac24-bc73c93319dc
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