UPDATE 1-SRM urges shareholders to oust HudBay board

TORONTO, March 19 (Reuters) - SRM Global Master Fund, which has launched a proxy battle to oust the board of directors at Canada's HudBay Minerals Inc (HBM.TO), urged shareholders again on Thursday to vote in favor of the slate of directors it has proposed.

A win for the SRM slate would result in former HudBay Chief Executive Peter Jones returning to take the company's reins.

SRM said in Thursday's statement to shareholders that its nominees have articulated a clear strategy to restore market confidence in HudBay and to return the base metals miner to growth.

Advisory firm RiskMetrics Group has recommended that shareholders vote in favor of the SRM slate. But another proxy advisory firm, Glass Lewis & Co, has recommended that shareholders reject the SRM slate, as it considers the removal of the entire board a drastic step and one that could potentially disturb the company's operations and hurt shareholder value.

Last month, HudBay said its lenders refused to renew an C$80 million ($65 million) credit facility citing uncertainty regarding the future of HudBay after SRM's move.

The results of the shareholder vote will be announced on March 25. The cut-off for voting is 10 a.m. (1400 GMT) on March 23.

Jones stepped down as CEO of HudBay in January 2008, making way for Allen Palmiere, who left the job earlier this month after HudBay's attempt to take over rival Lundin Mining (LUN.TO) failed.

The Lundin takeover bid, deemed too pricey and dilutive by some shareholders, prompted SRM to launch the proxy fight. The takeover failed after the Ontario Securities Commission ruled that HudBay would have to get approval from its sharehiolders to issue the stock it was using to buy Lundin.

SRM holds 11 percent of HudBay, while Goodman & Company Investment Counsel, which also supports the SRM slate, holds just over 10 percent.

($1=$1.23 Canadian) (Reporting by Euan Rocha; Editing by Peter Galloway)