Hudbay to buy New Britannia/Snow Lake
Hudbay is set to purchase the long-idle New Britannia gold mine in Snow Lake, a move that could potentially give the company a fourth northern Manitoba mine. QMX Gold Corp. plans to sell its Snow Lake Project, which includes the mine and a processing plant, to Hudbay for US$12.3 million in cash and a potential contingent payment of US$5 million. “This is a very positive achievement for Hudbay in Manitoba,” said Rob Winton, vice-president, Manitoba Business Unit for Hudbay. “Our immediate next step is to begin assessing what potential value can be realized in the long term.” While it’s not clear when the mine may restart, Winton said the purchase gives Hudbay “longer-term flexibility to deliver greater value out of Lalor [mine] and the Snow Lake area.” “This transaction builds on the over $440 million we recently invested to build the Lalor mine in Snow Lake and further demonstrates our commitment to mining in Manitoba,” he added. Brett New, president and CEO of Toronto-based QMX Gold, welcomed the deal. “I’m very pleased to announce that Hudbay, a well-established Canadian mineral producer, will be acquiring the Snow Lake Project,” he said in a news release, adding that his company will now focus on assets in Quebec. New Britannia, later renamed the Snow Lake mine, first opened as the Nor-Acme mine in 1949. After closing in 1958, it reopened as the New Britannia mine in 1995. The mine closed once again in early 2005, leaving a reported 200 people out of work. Over the past decade, the mine has been the subject of various reopening plans and rumours, but none materialized. Hudbay’s contingency payment of US$5 million is payable on the third anniversary of the closing date of the deal, provided the price of gold is equal to or greater than US$1,400 an ounce at that time. The transaction is expected to close on or about April 30, and is subject to regulatory and third-party approvals and customary conditions precedent. - See more at: https://www.thereminder.ca/news/local-news/hudbay-buying-idle-snow-lake-mine-1.1827809#sthash.ygoWgKcq.dpuf