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.
The Toronto-based 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 southern Peru.
The Constancia Mine is expected to be completed in the third quarter of 2013, with initial production forecast for late 2014.