NEW YORK Hudbay
Minerals Inc. has made strides in attaining funds for its
Lalor, Reed and Constancia copper projects by offering $150
million in senior unsecured notes.
The notes were priced
at 102 percent of the aggregate principal amount, providing the
company with gross proceeds of $153 million, and will yield
9.11 percent to maturity, according to the company.
The offering is
expected to close on or about June 20.
company said the net proceeds would be used for general
corporate purposes and the development of its Lalor and Reed
projects in Manitoba and its Constancia project in Peru.
This offering is in
addition to $500 million in unsecured notes Hudbay issued in
September 2012, also to be used for the copper projects (
amm.com, Sept. 7).
Meanwhile, Hudbay has
also obtained a $130-million equipment financing facility from
Caterpillar Financial Services, an equipment financing company
in Nashville, Tenn. The financing facility will cover $130
million of equipment from Caterpillar and other manufacturers
for the mobile fleet at Hudbays Constancia project in
The Constancia Mine is
expected to be completed in the third quarter of 2013, with
initial production forecast for late 2014.