HudBay to earn interest in Halo's Cold and Lost land
2009-12-22 17:49 ET - News Release
Mr. John Vincic reports
HudBay Minerals Announces Option Agreement with Halo Resources Ltd.
HUDBAY MINERALS ANNOUNCES OPTION AGREEMENT WITH HALO RESOURCES LTD.
HudBay Minerals Inc., through a wholly owned subsidiary, has entered into an option agreement with Halo Resources Ltd. The agreement allows HudBay to earn up to a 67.5-per-cent joint venture interest in Halo's Cold and Lost properties in the Sherridon VMS district in Manitoba, located approximately 110 kilometres by road from HudBay's facilities in Flin Flon.
"We are pleased to be entering into this arrangement with Halo," said W. Warren Holmes, HudBay's executive vice-chairman. "If exploration results continue to be successful, this is an opportunity that could be quickly developed into an additional source of zinc feed for our Flin Flon plant."
HudBay can acquire a 51-per-cent interest by making total cash payments to Halo of $800,000 and completing work expenditures on the property of $1.35-million, in each case within the next two years. The company can increase its interest to 60 per cent by financing and completing a feasibility study within the next four years and paying $2-million in cash to Halo. It may further increase its interest to 67.5 per cent by paying Halo an additional $2.5-million prior to commencement of commercial production.
HudBay will act as operator of the joint venture and will purchase all ore produced by the joint venture.