TORONTO — HudBay Minerals has its share of corporate woes. Angry shareholders forced the company to withdraw its takeover bid for Lundin Mining rather than face a failed shareholder vote. Now those shareholders, notably SRM Global Master Fund of Monaco, want to oust the HudBay board.
With an 11% holding in HudBay, SRM is charging the Canadian company with neglect and self-interest in the matter of the Lundin deal. Now it wants to oust the HudBay board and install its own slate of directors including former HudBay CEO Peter R. Jones.
The current HudBay management opposes the change and has urged shareholders to vote against the slate of SRM nominees at a special meeting to be held at 10 am, March 25, 2009, in Toronto.
Voting instructions and management's letter to shareholders may be read in the Feb. 27, 2008, news release posted at www.HudBayMinerals.com.
Uncertainty over the HudBay-SRM situation forced one lender to refuse to renew HudBay's $80 million credit facility which expired at the end of February. HudBay says the facility was undrawn and that the company had no indebtedness and $686 million cash on hand at Feb. 25, 2008.
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