PINL:HLOSF - Post by User
Post by
ama21968on Nov 04, 2010 2:48am
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Post# 17655324
HudBay plans to buy them out......
HudBay plans to buy them out......The executive also said, HudBay is actively looking to add mining projects through relationships with junior companies.
While HudBay considers itself an exploration company as well as a miner, spending $42 million in 2010 to explore its existing properties, the CEO said, "It would be very cost inefficient for us to set up infrastructures in every mining camp that looks desirable to us."
Instead, the Toronto-based miner, with primary operations in northern Manitoba, views junior miners with promising properties as extensions of its exploration program.
"We give them capital. They have boots on the ground and then we get a toehold in the company's project. That's a way to leverage our exploration without having to build up the infrastructure," said Garofalo.
HudBay plans to continue that expansion strategy. And if its stake in a junior miner leads to deposits that can be developed into productive mines, HudBay plans to buy them out.
Garofalo said he sees the greatest potential to create value in the exploration and mine construction stages, rather than acquiring mature operations, which often means issuing shares for assets that are already fully valued.
VMS or HLO ? or both? ( I mean in Manitoba/Canada)