Sunday 25th September 2016

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Norsemont to be bought by HudBay for $520M Cash and Shares

HudBay Minerals Inc HBM:CA and Norsemont Mining Inc NOM:CA announced that they have entered into an agreement whereby Hudbay will acquire all outstanding shares of Norsemont by way of a formal take-over bid. The transaction values Norsemont at approximately $520 million and shareholders who elect to receive maximum equity will receive $4.65 per share. Norsemont owns the Constancia Copper Project in southern Peru.

Hudbay President/CEO David Garofalo said, “This transaction 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 with our strong financial position complement our ability to execute a focused growth strategy of acquiring porphyry and VMS deposits with exploration upside in the Americas. Bringing Constancia into operation will significantly increase HudBay’s copper production and contribute to HudBay’s precious metals production growth. In addition, this acquisition is expected to increase our mineral exposure on a per share basis, and deliver per share growth in net asset value and long term earnings and cash flow. Our offer permits Norsemont’s shareholders to continue to participate in the development of the Constancia project with the added benefit of exposure to HudBay’s profitable operations and world class Lalor development project.”

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Contact:
HudBay Minerals Inc
John Vincic
VP Investor Relations
416.362.0615

or Norsemont Mining Inc
Patrick Evans
CEO
416.408.4088

by Ted Niles

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