Hudbay Completes Upsized Bought Deal Equity Offering

Core Viewpoint - Hudbay Minerals Inc. has successfully closed a public offering of common shares, raising a total of US$402,477,000 through the issuance of 42,366,000 common shares at a price of US$9.50 per share, including an additional 15% from the over-allotment option exercised by underwriters [1][2]. Group 1: Offering Details - The offering was completed under an underwriting agreement dated May 22, 2024, with a syndicate led by RBC Capital Markets and BMO Capital Markets [2]. - The total gross proceeds from the offering amount to US$402,477,000, which includes 5,526,000 shares from the over-allotment option [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for several near-term growth initiatives, including mine pre-stripping activities and mill optimization at Copper Mountain [3]. - Funds will also be allocated to enhance balance sheet flexibility through debt repayments as part of the "3P" plan for the Copper World project, and to evaluate throughput enhancement opportunities at Constancia and New Britannia [3]. Group 3: Company Overview - Hudbay is a copper-focused mining company with operations in Canada, Peru, and the United States, and has a pipeline of copper growth projects [9][10]. - The company's operating portfolio includes the Constancia mine in Peru, Snow Lake operations in Manitoba, and the Copper Mountain mine in British Columbia, with copper as the primary metal produced [10].