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UPDATE 1-HudBay says owns 51 pct interest in Michigan JV project
September 10, 2010 / 1:05 PM / 7 years ago

UPDATE 1-HudBay says owns 51 pct interest in Michigan JV project

* Says to act as operator of Back Forty project

* Co can raise interest to 65 pct post mining application

* Sees submitting mining application by Q4 2011

Sept 10 (Reuters) - Canada’s HudBay Minerals (HBM.TO) said on Friday it has exercised its option to own a 51 percent interest in a Michigan-based joint venture project with Aquila Resources (AQA.TO).

HudBay, whose main operations are in the Western Canadian province of Manitoba, said it will act as operator of the Back Forty project -- an advanced stage exploration project evaluating zinc and gold-rich volcanogenic massive sulfide (VMS) in Michigan’s upper peninsula region.

HudBay said it spent $10 million on the project in order to own the interest.

HudBay said it can increase its ownership interest to 65 percent after completing a feasibility study and submitting a mine permit application to the State of Michigan, which it expects to submit in the fourth quarter of 2011.

Toronto-based HudBay shares have gained 67 percent of their value since the company announced the joint venture pact with Aquila in August last year. They closed at C$14.94 Thursday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Maju Samuel)

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