The U.S. Department of Justice and Hudbay Receive Rosemont 9th Circuit Court Ruling; Hudbay Continues to Advance Copper World
May 12 2022 - 5:11PM
Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX, NYSE: HBM) and the U.S. Department
of Justice today received a split decision from the U.S. Court of
Appeals for the Ninth Circuit (the “Decision”), which affirmed the
U.S. District Court for the District of Arizona’s (“District
Court”) decision in July 2019 relating to the Rosemont copper
project in Arizona. In the Decision, the Court of Appeals agreed
with the District Court’s ruling that the U.S. Forest Service
relied on incorrect assumptions regarding its legal authority and
the validity of Rosemont’s unpatented mining claims in the issuance
of Rosemont’s Final Environmental Impact Statement. While Hudbay
reviews the Decision, in any event, the company will continue to
pursue its alternative plan to advance its Copper World project.
Since 2019, Hudbay has successfully discovered
the Copper World deposits located on patented mining claims
adjacent to Rosemont. The company has also acquired a private land
package totaling approximately 4,500 acres to support an operation
on private lands. The initial technical studies for Copper World
have been completed and the results are being incorporated into a
Preliminary Economic Assessment (“PEA”) contemplating the
development of the Copper World deposits in conjunction with an
alternative plan for the Rosemont deposit. The PEA is expected to
incorporate a two-phase mine plan with the first phase reflecting a
standalone operation utilizing Hudbay’s private land for processing
infrastructure and contemplating mining portions of Copper World
and Rosemont located on patented mining claims. The first phase is
expected to require only state and local permits and is expected to
reflect an approximate 15-year mine life. The second phase of
the mine plan is expected to extend the mine life and incorporate
an expansion onto federal lands to mine the entire Rosemont and
Copper World deposits. The second phase of the mine plan would be
subject to the federal permitting process and the company expects
it will be able to pursue the federal permits within the
constraints imposed by the Decision, if any subsequent appeals are
not successful. Hudbay expects the PEA to demonstrate positive
economics for this low-cost, long-life copper project and the
company is on track to publish the results in a NI 43-101 Technical
Report in the second quarter of 2022.
Forward-Looking Information
This news release contains forward-looking
information within the meaning of applicable Canadian and United
States securities legislation. Forward-looking information
includes, but is not limited to, Hudbay’s expectations regarding
the impacts of the decision of the U.S. Court of Appeals for the
Ninth Circuit, Hudbay’s expectations regarding the preliminary
economic assessment of the Copper World project and a potential
alternative development plan for the Rosemont deposit and Hudbay’s
expectations regarding the economics and permitting requirements
for the Copper World project. Forward-looking information is not,
and cannot be, a guarantee of future results or events.
Forward-looking information is based on, among other things,
opinions, assumptions, estimates and analyses that, while
considered reasonable by the company at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies and other factors
that may cause actual results and events to be materially different
from those expressed or implied by the forward-looking
information.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, you should not place undue reliance on forward-looking
information. Hudbay does not assume any obligation to update or
revise any forward-looking information after the date of this news
release or to explain any material difference between subsequent
actual events and any forward-looking information, except as
required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining
company primarily producing copper concentrate (containing copper,
gold and silver), zinc metal and silver/gold doré. Directly and
through its subsidiaries, Hudbay owns three polymetallic mines,
four ore concentrators and a zinc production facility in northern
Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper
projects in Arizona and Nevada (United States). The company’s
growth strategy is focused on the exploration, development,
operation and optimization of properties it already controls, as
well as other mineral assets it may acquire that fit its strategic
criteria. Hudbay’s mission is to create sustainable value through
the acquisition, development and operation of high-quality,
long-life deposits with exploration potential in jurisdictions that
support responsible mining, and to see the regions and communities
in which the company operates benefit from its presence. The
company is governed by the Canada Business Corporations Act and its
shares are listed under the symbol "HBM" on the Toronto Stock
Exchange, New York Stock Exchange and Bolsa de Valores de Lima.
Further information about Hudbay can be found on
www.hudbay.com.
For investor and media inquiries, please
contact:
Candace BrûléVice President, Investor
Relations (416) 814-4387 candace.brule@hudbay.com
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