HudBay Looks to Acquire Norsemont

HudBay, a Canadian base metals miner, has made a friendly deal to take over explorer and development company Norsemont.

HudBay chief executive officer David Garofalo hopes to enhance the growth of the company after it has hit a number of setbacks in the last few years. He was appointed to the position in July last year, the fourth to hold the office in two years.

This $520 million cash and share acquisition of Norsemont will be the first major deal that David Garofalo will undertake. It will also give HudBay entry into resource rich Peru with the flagship project of Norsemont, the Constancia copper project in the south of the country. The production from this project alone will more than double the company’s present copper output.

The Toronto based HudBay has made a takeover bid for Ludin mining in 2009 but it had not been successful. The company has 35% support from Norsemont shareholders for the bid and will need 50% to be successful.

It will also help diversify its production from copper and zinc which are the main focus of the company in Manitoba. Mr Garofalo said that it was a significant milestone. He also said that now that they had taken care of business in their home camp they could look further outwards to diversify their portfolio.

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