TORONTO – Hudbay Minerals has received a deposit payment of US$125 million from Silver Wheaton Corp. The money is part of a previously announced US$750 million precious metals stream transaction.
Silver Wheaton made an initial payment of US$500 million in September 2012. The final US$125 million will reach the Hudbay treasury when that company has incurred and paid US$1 billion in capital expenditures at its Constancia copper project in the southeast part of Peru.
The US$1.5 billion development includes an open pit mine and mill underpinned by proven and probable reserves of 403 million tonnes grading 0.35% Cu, 96 g/t Mo, 3.25 g/t Ag, and 0.042 g/t Au. Commissioning is scheduled for early 2015. Annual copper contained in concentrate production will average 118,000 tonnes during the first five years of production and 77,000 tonnes in subsequent years.
Hudbay has estimated operating cash costs, net of by-product credits, will average US$0.66/lb of copper for the first five years of production and US$1.11/lb thereafter.
Additional information is available at HudbayMinerals.com.