…oh, no no no no no…perish the thought…..
Never mind…next please…
HudBay Minerals Announces Agreement To Acquire Norsemont Mining
Press Release Source: Norsemont Mining Inc. On Monday January 10, 2011, 6:00 am EST
HUDBAY’S COMBINED ANNUAL COPPER PRODUCTION EXPECTED TO INCREASE BY APPROXIMATELY 145% FROM 2011 LEVELS
Editors Note: All amounts listed are in Canadian dollars unless otherwise indicated
- Norsemont shareholders will receive 0.2617 HudBay shares and $0.001 in cash, or $4.50 in cash, subject to a maximum aggregate cash consideration of $130 million.
- HudBay’s offer represents a premium of 33%(1), based on the volume weighted average trading prices of HudBay and Norsemont on the TSX for the 20 trading days ended January 7, 2011 of $17.76 and $3.49, respectively.
- Norsemont’s Constancia copper project has excellent infrastructure in an established mining district in Peru.
- HudBay’s future combined copper production is expected to grow by approximately 145% between 2011 and 2016, as a result of bringing Constancia into full production. Constancia will also contribute to HudBay’s gold equivalent production, which is expected to increase 130% during the same period(2).
- The Norsemont acquisition is expected to increase HudBay’s mineral exposure on a per share basis and is expected to deliver per share growth in HudBay’s net asset value and long term earnings and cash flow.
- The transaction is consistent with HudBay’s strategy of acquiring porphyry or VMS deposits with exploration upside in mining-friendly jurisdictions in the Americas, with the opportunity to add value through exploration, mine development and operational expertise.
- With $1.2 billion of available cash and credit lines, and strong cash flow from existing operations, HudBay is in an excellent position to finance construction of the Constancia project.