Miner HudBay buys Norsemont for $520M

HudBay Minerals Inc. says it has reached an agreement to acquire Norsemont Mining Inc. in a cash and share transaction valued at $520 million.

The purchase will give the Canadian base metals miner full ownership of the Constancia copper project in southern Peru.

"This transaction helps solidify HudBay's position as one of the leading mid-tier mining companies with an enhanced growth pipeline in stable, mining-friendly jurisdictions," said HudBay president and CEO David Garofalo in a release.

"With its strong balance sheet and exceptional technical expertise, HudBay is well placed to accelerate the development of the Constancia project far sooner than Norsemont could have achieved independently."

HudBay said the acquisition is expected to help boost its copper production by about 145 per cent between 2011 and 2016, as it brings the Constancia mine to full production.

HudBay already owns a 1.1 per cent stake in Norsemont.