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(AMM) HudBay agrees to acquire Lundin for $630M

November 22, 2008 - 00:03 GMT Location: NEW YORK

HudBay Minerals Inc., Toronto, on Friday agreed to acquire Lundin Mining Corp. in an all-stock deal valued at around C$800 million ($630 million) as of the market close Thursday, marking the formation of Canada's second-largest base metals producer, rivaled only by Teck Cominco Ltd.

The transaction is scheduled for completion in February.

Under the terms of the transaction, each Lundin share will automatically be exchanged for 0.3919 HudBay common shares, a price that is about 32 percent higher than Lundin's 30-day trading price on the Toronto Stock Exchange, the company said.

Hudbay's shares plunged 39.6 percent to C$3.16 ($2.49) on the TSX on Friday, down from C$5.23 on Thursday. Meanwhile, Lundin's shares rose nearly 4 percent to C$1.05 (82.63 cents) from Thursday's close at C$1.01.

The deal will create a large-scale company with...

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