Plan of the Rosemont mine site. (Credit: Hudbay Minerals)
TORONTO – Hudbay Minerals says it has closed its previously announced equity offering of 24 million shares at a price of $10.10 per share. Gross proceeds are $242.4 million.
The company said it will use the net proceeds of the offering to advance its current growth projects, enhance its financial flexibility to pursue other growth opportunities, reduce debt and for general corporate purposes.
Hudbay currently has one major development project underway – the 80% owned Rosemont copper project in Arizona. When in commercial production, the mine is expected to account for 10% of total U.S. copper production with an annual output of 127,000 tonnes of copper during its first 10 years of operation. This will be a conventional truck and shovel open pit operation with a 19-year mine life. The project will start up with proven and probable reserves of 14.2 million tonnes grading 5.12% zinc, 0.69% copper, and 2.61 g/t gold.
More information is available at www.HudbayMinerals.com.