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NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES
HudBay Minerals Inc. ("HudBay", the "company")
(TSX:HBM)(NYSE:HBM) today announced that it has entered into a subscription
agreement with Copper Reef Mining Corporation ("Copper Reef")
(CNSX:CZC) providing for the sale to HudBay
on a private placement basis of 7,000,000 units (the "Units")
of Copper Reef at a purchase price of C$0.15 per Unit for total
consideration of C$1,050,000. Each Unit consists of one common share of
Copper Reef (a "Share") issued as a "flow-through
share" within the meaning of the Income Tax Act (Canada) and one
Share purchase warrant of Copper Reef (a "Warrant"). Each
Warrant will entitle HudBay to acquire one
Share at an exercise price of C$0.15 at any time during the six months
following closing of the transaction.
Upon closing of the subscription, which is subject to certain customary
conditions, HudBay will own and have control
over 7,000,000 Shares (approximately 7.9% of the issued and outstanding
Shares), and will own 7,000,000 Warrants which, together with the
Shares, represents approximately 14.7% of the issued and outstanding
Shares on a partially-diluted basis.
The investment in the Shares and Warrants is being made to assist in
the financing of exploration on a mineral property held by Copper Reef
near HudBay's 777 mine
in Flin Flon,
Manitoba.
HudBay Minerals Inc.
HudBay Minerals Inc. (TSX:HBM)(NYSE: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 with its corporate offices at 1 Adelaide Street East,
suite 2501, Toronto, Ontario. 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.
Forward-Looking Information
Certain of the statements made and information contained herein may
contain forward-looking information within the meaning of applicable
Canadian securities laws. Forward-looking information includes, but is
not limited to, information concerning the anticipated closing of the
transaction contemplated by the subscription agreement referred to in
the news release.
Forward-looking information is based on the views, opinions, intentions
and estimates of management at the date the information is made, and is
based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those anticipated or projected in the
forward-looking information (including the actions of other parties who
have agreed to do certain things and the approval of certain regulatory
bodies). Many of these assumptions are based on factors and events that
are not within the control of HudBay and
there is no assurance they will prove to be correct. There can be no
assurance that forward-looking information will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such information. HudBay
undertakes no obligation to update forward-looking information if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws, or to comment on
analyses, expectations or statements made by third parties in respect
of HudBay, its financial or operating results
or its securities. The reader is cautioned not to place undue reliance
on forward-looking information.
(HBM-G)
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