TORONTO, May 21, 2024
/CNW/ - Hudbay Minerals Inc. ("Hudbay" or the "Company")
(TSX: HBM) (NYSE: HBM) announced today that it has entered into an
agreement with a syndicate of underwriters led by RBC Capital
Markets and BMO Capital Markets as Joint Bookrunners (collectively,
the "Underwriters"), pursuant to which the Underwriters have agreed
to purchase, on a bought deal basis from the Company, a total of
31,600,000 common shares of Hudbay ("Common Shares") at a price of
US$9.50 per Common Share for
aggregate gross proceeds of US$300,200,000 (the "Offering").
Hudbay has also granted the Underwriters an over-allotment
option (the "Over-Allotment Option") to purchase, on the same terms
and conditions of the Offering, up to an additional 15% of the
Common Shares issued in connection with the Offering. The
Over-Allotment Option is exercisable, in whole or in part, by the
Underwriters at any time until and including 30 days after closing
of the Offering. The maximum gross proceeds raised under the
Offering will be US$345,230,000 in
the event the Over-Allotment Option is fully exercised. The
Offering is expected to close on or about May 24th, 2024 and is subject to
customary closing conditions, including receiving all necessary
stock exchange and other regulatory approvals.
The Company intends to use the net proceeds of the Offering to
fund near-term growth initiatives, including acceleration of mine
pre-stripping activities and mill optimization initiatives at
Copper Mountain, to enhance balance sheet flexibility through debt
repayments as part of its "3P" plan for a sanctioning decision on
Copper World, to evaluate mill throughput enhancement opportunities
at Constancia and New Britannia, and for general corporate
purposes, as further described in the Prospectus Supplement (as
defined below).
The Common Shares will be offered by way of a prospectus
supplement (the "Prospectus Supplement") to Hudbay's short form
base shelf prospectus dated March
28th, 2024 (the "Prospectus") filed with the
securities regulatory authorities in each of the provinces and
territories of Canada and included
in its registration statement on Form F-10 filed with the U.S.
Securities and Exchange Commission ("SEC").
The Common Shares will be offered in all of the provinces and
territories of Canada, other than
Quebec, and in the United States and, subject to applicable
law, in certain jurisdictions outside of Canada and the
United States through the Underwriters either directly or
through their respective Canadian or U.S. broker-dealer affiliates
or agents. No securities regulatory authority has either approved
or disapproved the contents of this news release. This news release
shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of these securities in
any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such province, state
or jurisdiction.
Before investing, prospective purchasers should read the
Prospectus Supplement, the Prospectus and the documents
incorporated by reference therein for more complete information
about Hudbay and the Offering. A copy of the Prospectus is, and a
copy of the Prospectus Supplement will be, available free of charge
on SEDAR+ (http://www.sedarplus.ca) and on the SEC website
(http://www.sec.gov). Alternatively, copies may be obtained upon
request in Canada by contacting
RBC Capital Markets, Attn: Distribution Centre, RBC Wellington
Square, 8th Floor, 180 Wellington St. W., Toronto, Ontario, M5J 0C2 at Phone:
416-842-5349; E-mail: Distribution.RBCDS@rbccm.com and in
the United States from RBC Capital
Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281-8098; Attention: Equity
Syndicate; Phone: 877-822-4089; Email: equityprospectus@rbccm.com.
Additionally, copies of these documents may be obtained upon
request in Canada by contacting
BMO Capital Markets by mail at Brampton Distribution Centre c/o The
Data Group of Companies, 9195 Torbram Road, Brampton, ON, L6S 6H2, by telephone at
905-791-3151 Ext 4312, or by email at
torbramwarehouse@datagroup.ca, and in the
United States by contacting BMO Capital Markets Corp. by
mail at 151 W 42nd Street, 32nd Floor, New York, NY 10036, Attn: Equity Syndicate
Department, by telephone at 1-800-414-3627, or by email at
bmoprospectus@bmo.com.
Forward-Looking Information
This news release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian and United States
securities legislation (collectively herein referred to as
"forward-looking information"). All forward-looking information in
news release is qualified by this cautionary note. Often, but not
always, forward-looking information can be identified by the use of
words such as "plans", "expects", "budget", "guidance", "scheduled"
"estimates", "forecasts", "strategy", "target", "intends",
"objective", "goal", "understands", "anticipates" and "believes"
(and variations of these or similar words) and statements that
certain actions, events or results "may", "could", "would",
"should", "might" "occur" or "be achieved" or "will be taken" (and
variations of these or similar expressions).
Forward-looking information herein includes, but is not limited
to, statements related to the terms of the Offering, the
potential for the Underwriters to exercise the Over-Allotment
Option, the anticipated closing date and receipt of all
necessary stock exchange and other regulatory approvals, the use of
proceeds from the Offering, and Hudbay's business, objectives,
strategies, and intentions. 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.
Prospective purchasers should refer to the Prospectus Supplement,
Prospectus, and the documents incorporated by reference therein for
further disclosures in respect of the risks, uncertainties,
contingencies and other factors that may cause actual results to
differ materially from those expressed or implied by the
forward-looking information herein. Subject to applicable
securities law requirements, Hudbay undertakes no obligation to
update or revise any forward-looking information after the date of
any forward-looking information whether as a result of new
information, future events or otherwise or to explain any material
difference between subsequent actual events and any forward-looking
information.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a copper-focused mining company with
three long-life operations and a world-class pipeline of copper
growth projects in tier-one mining-friendly jurisdictions of
Canada, Peru and the United
States.
Hudbay's operating portfolio includes the Constancia mine in
Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine
in British Columbia (Canada).
Copper is the primary metal produced by the company, which is
complemented by meaningful gold production. Hudbay's growth
pipeline includes the Copper World project in Arizona (United
States), the Mason project in Nevada (United
States), the Llaguen project in La Libertad (Peru) and several expansion and exploration
opportunities near its existing operations.
The value Hudbay creates and the impact it has is embodied in
its purpose statement: "We care about our people, our communities
and our planet. Hudbay provides the metals the world needs. We work
sustainably, transform lives and create better futures for
communities." Hudbay's mission is to create sustainable value and
strong returns by leveraging its core strengths in community
relations, focused exploration, mine development and efficient
operations.
SOURCE Hudbay Minerals Inc.