The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
HudBay Minerals said last week it is exercising its right to acquire all outstanding common shares of Norsemont Mining it does not already own. Upon completion of this compulsory acquisition, HudBay intends to de-list the common shares of Norsemont from the Toronto and Lima stock exchanges and to cause Norsemont to cease to be a reporting issuer. As previously announced, HudBay has been successful in its bid to acquire Norsemont, having taken up a total of 112,185,931 shares of the Toronto-based company. The overall takeover of Norsemont is worth $520 million. Norsemont's chief asset is the Constancia project in Peru. Leading position In first announcing the transaction in January, HudBay President and CEO David Garofalo said the move "helps solidify HudBay's position as one of the leading mid-tier mining companies with an enhanced growth pipeline in stable, mining-friendly jurisdictions." "Our reliable operations in low-risk jurisdictions combined wi th our strong financial position," he added, "complement our ability to execute a focused growth strategy of acquiring porphyry and VMS (volcanogenic massive sulfide) deposits with exploration upside in the Americas." Norsemont owns 100 per cent of the Constancia project. As of Sept. 2009, the project had proven and probable mineral reserves of 277 million ore tonnes grading 0.43 per cent copper, 0.012 per cent molybdenum, 0.05 grams per tonne gold and 3.7 grams per tonne silver. Based on the preliminary results of a recently released optimization study, Constancia is expected to annually produce 172 million pounds of copper and two million pounds of molybdenum in concentrate, at attractive cash costs, over a 15-year mine life. Ð Compiled from HudBay Minerals news releases.
