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(Kitco News) - Hudbay Minerals (TSX, NYSE: HBM) announced today that it has entered into a definitive agreement with Rockcliff Metals (CSE: RCLF, OTCQB: RKCLF) pursuant to which Hudbay will acquire 100% of the issued and outstanding common shares of Rockcliff that it does not already own.
In a statement, the company said that under the arrangement, Rockcliff shareholders will receive 0.006776 of a Hudbay common share for each Rockcliff common share held, representing an “attractive premium” to Rockcliff’s recent trading price.
The company added that the enterprise value to Hudbay, net of Rockcliff’s cash, is approximately US$13 million.
President and CEO Peter Kukielski commented, “This is a logical transaction that has the potential to further extend mine life at our Snow Lake operations by consolidating our ownership in the Talbot copper-gold deposit and more than tripling our prospective land package in the Snow Lake region. The Talbot deposit and the additional Rockcliff satellite deposits provide further optionality and potential future feed sources for our Stall and New Britannia mills.”
Rockcliff Metals is a Canadian major explorer in the Flin Flon-Snow Lake greenstone belt, Manitoba, home to the largest Paleoproterozoic VMS district in the world hosting mines and deposits that contain copper, zinc, gold and silver.
The company’s extensive portfolio of properties totals approximately 1,800 km² and includes six 100% owned high grade, undeveloped VMS deposits. Rockcliff’s (49% ownership) seventh high grade VMS deposit, the Talbot copper deposit, is a joint venture with Hudbay (51% ownership).
Rockcliff has measured and indicated mineral resources of 7.9 million tonnes grading 3.60% copper equivalent and inferred mineral resources of 5.1 million tonnes grading 3.19% copper equivalent.
Hudbay is a copper-focused mining company with three long-life operations and a pipeline of copper growth projects in 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, upon completion of the arrangement with Copper Mountain Mining, the Copper Mountain mine in British Columbia (Canada).
