TORONTO ONTZINC CORP. has offered to acquire 100% of HUDSON BAY MINING & SMELTING from ANGLO AMERICAN INTERNATIONAL for about $325 million. When the deal is complete, OntZinc plans to change its name to HUDSON BAY INTERNATIONAL MINERALS CORP.
HBM&S operates the Trout Lake, Chisel North, Konuto Lake, Callinan and 777 base metal mines in northern Manitoba. Ore is treated in either of two mills located in Flin Flon and Snow Lake. Flin Flon is also the home of the HBM&S copper smelter and zinc refinery. The recent completion of the 777 Program (see CMJ, April 2004) developed two new mines, expanded the concentrator and zinc plant, reduced emissions from the smelter, and updated the electrical substation at a cost of more than $400 million.
With the acquisition, OntZinc moves a step closer to becoming a significant producer of copper and zinc. HBM&S produced about 39,0000 tonnes of copper and 93,000 tonnes of zinc in 2003. Through wholly-owned subsidiary St. Lawrence Zinc, OntZinc owns the suspended Balmat mine in New York. It also owns (through subsidiary ScoZinc) the Scotia property, which includes the former Gays River zinc mine and mill in Nova Scotia.
Completion of the transaction is subject to the receipt of all necessary shareholder, regulatory and third party consents, satisfaction of customary closing conditions, and the raising of the required financing, said OntZinc. Visit the company's website at www.OntZinc.ca.
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