Alan Hair Mason Resources Corp. of Vancouver and Toronto-based Hudbay Minerals Inc. have announced that they have entered into an arrangement agreement where Hudbay will acquire the remaining 86 percent of the issued and outstanding common shares of Mason that it does not already own.
Arrangement values Mason at $31 million with Hudbay’s current 14 percent ownership in Mason, is valued at close to $20 million.
Stephen Scott, president and CEO of Mason, comments, “We are excited to be announcing this transaction. We are very pleased with the progress we have made establishing the Ann Mason project as a world-class and highly prospective copper deposit. The acquisition by a well-run, diversified, cash flowing base metal producer ensures a faster and lower risk development path for the Ann Mason project. Given its significant scale, it is not feasible for Mason to develop the mine on a stand-alone basis in a timely fashion and without considerable equity dilution and financial risk. The acquisition of Mason by Hudbay provides an opportunity for shareholders to realize immediate value from their investment in Mason.”
Alan Hair, president and CEO of Hudbay, comments, “The acquisition of the Ann Mason project is another step in Hudbay’s consistent strategy of accretive acquisitions of scarce, high-quality copper resources in mining-friendly jurisdictions. Ann Mason is an ideal fit for Hudbay’s development pipeline and is at the stage where we can apply our exploration expertise, advance technical studies and leverage our proven mine development team to create value for our shareholders.”
Mason is the 100 percent owner of the Ann Mason deposit located in the Yerington District of Nevada.
Hudbay is an integrated mining company primarily producing copper concentrate (containing copper, gold and silver), zinc concentrate, molybdenum concentrate and zinc metal. With assets in North and South America, the company is focused on the discovery, production and marketing of base and precious metals. Directly and through its subsidiaries, Hudbay owns four polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan and Cusco, Peru, and a copper project in Arizona.
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