HudBay Minerals To Sell 51% Interest In Back Forty Project To Aquila Resources

(RTTNews) - HudBay Minerals Inc. (HBM, HBM.TO) said it has reached a deal to sell its 51 percent interest in the Back Forty Project in Michigan's Upper Peninsula to its joint venture partner Aquila Resources Inc. (AQA.TO).

Upon completion of the transaction, Hudbay will receive common shares of Aquila, milestone payments tied to the development of the Back Forty Project and a net smelter return royalty on a portion of the Back Forty property.

The completion of the transaction is conditional upon completion of a business combination transaction between Aquila and REBgold Corp. (RBG.V), an equity financing by REBgold and other customary conditions.

Hudbay currently owns and controls 14.37 million Aquila common shares, representing about 14.6 percent of the issued and outstanding shares. Upon closing of the transaction and the receipt of the consideration shares, Hudbay expects to own about 17.4 percent of the issued and outstanding Aquila common shares.