HudBay Minerals and Norsemont Mining have entered into an agreement pursuant to which HudBay will acquire all of the outstanding common shares of Norsemont that HudBay does not already own by way of a formal take-over bid. The transaction values the equity of Norsemont at about $520 million on a fully-diluted basis. Payment would be a combination of cash and HudBay shares.

Norsemont is a Canadian exploration and development company focused on its 100%-controlled Constancia copper-molybdenum-silver property in Peru’s southern highlands.

The Constancia definitive feasibility study proposes development of an open-pit mine and flotation concentrator to produce commercial grade copper and molybdenum concentrates. The proposed project is expected to produce 172 million lb/y of copper and 2 million lb/y of molybdenum in concentrates over a 15-year mine life.