HudBay to acquire Skye, Fénix ferronickel project for US$429mn

Canadian miner HudBay Minerals (TSX: HBM) has agreed to buy compatriot Skye Resources (TSX: SKR) and its Guatemalan ferronickel project Fénix for approximately Cdn$434mn (US$429mn) in stock based on Tuesday's prices, both companies reported in a joint statement.

Under the deal, each Skye common share will be exchanged for 0.61 HudBay common shares, which represents about a 35% premium over Skye's 20 day volume weighted average and approximately a 17% premium over the company's closing price on June 20, the companies said.

After completion of the transaction, HudBay will have some 161mn common shares outstanding, of which current HudBay shareholders will own 79.7% and former Skye shareholders will own 20.3%, the statement said.

"This is a tremendous addition to HudBay's development pipeline and provides important diversification to the company's existing portfolio. Our balance sheet strength together with the continuing strong cash flows from our current operations place us in an excellent position to bring to production the Fénix project," HudBay CEO Allen Palmiere said.

"This agreement merges the world class ferronickel Fénix project with a company with the financial and technical capacity to move it forward rapidly," said Skye CEO Colin Benner.

In a private placement and as part of the agreement, HudBay will also acquire nearly 12.7mn Skye common shares at Cdn$7.51 each, for total gross proceeds to Skye of Cdn$95.2mn.

The transaction is subject to Skye obtaining required shareholder approval and is expected to close by late August.

Fénix holds 41.4Mt of proven and probable reserves grading 1.63% nickel, and is due to require a US$640mn startup capex and churn out 1.3Blb (590,000t) of nickel over a 30-year mine life using conventional smelting technology. Phase 2 of the project assumes that a new solid-fuel power plant will be in service by the end of the fifth year of production, with an additional estimated capital cost of US$344mn.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: June 26, 2008


Taca Cargo to start Lima-Guatemala direct flights from July 15th

Taca airline will start direct cargo flights from Lima to Guatemala from July 15th, with three flights a week, the director of Taca Cargo, Víctor Mejía, reported Wednesday.

Flights will be available on Tuesday, Thursday and Saturday in both ways. Flights from Lima will take off at 10:30 hours (15:30 GMT) and land in Guatemala at 14:05 hours.

While, flights from Guatemala will take off at 15:00 hours and land in Lima at 20:35 hours.

In this way, Peruvian exporters will have a larger offer for their exports abroad, and the central american entrepreneurs will be benefited as well.

"For us, it is important to be able to provide an excellent service on aour flights".

Publication: Andina - English Newswire
Provider: Andina
Date: June 19, 2008

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