HudBay Minerals completes merger with Skye Resources

Wednesday, 27 Aug 2008

HudBay Minerals Inc and Skye Resources Inc announced that the business combination between the two companies has been completed.

Effective August 26th 2008, 31,295,685 HudBay shares were issued under a plan of arrangement pursuant to the Business Corporations Act. Skye common shares have been automatically exchanged on the basis of 0.61 HudBay common shares and CAD 0.001 in cash for each Skye common share held.

Mr Allen Palmiere president & CEO of HudBay said that "We are very excited at the prospects for the combined company. The completion of this transaction advances one of the key elements of our strategy building scale and scope through opportunistic investments to complement HudBay's existing operations."

He added that "HudBay's attractive mix of producing, development and exploration assets provide a solid platform for future growth. Our balance sheet strength and cash flows place us in an excellent position to bring the Fenix Project into production as well as continue our aggressive exploration and development activities in the prolific Flin Flon Greenstone Belt. At the same time, we will continue to seek additional opportunities in support of further growth and value creation for shareholders."