Categories: Base Metals
Topics: General Base Metals

Globe says Quadra, Vedanta eye HudBay

The Globe and Mail reports in its Tuesday edition that Quadra Mining has acquired a significant interest in HudBay Minerals. The Globe's Andy Hoffman writes that Quadra joins India's Vedanta Resources PLC on the list of potential suitors or partners for the Canadian mining firm. Documents filed with the Ontario Superior Court show Quadra holds 5.7 million HudBay shares or about 3.7 per cent of the company. Quadra chief executive officer Paul Blythe said his company acquired the stock after holding early-stage talks with HudBay last year. "We felt it would be of mutual interest to consider some sort of combination," Mr. Blythe told The Globe. Vedanta is India's largest base metals company. HudBay, which mines and processes zinc and copper at operations in Manitoba, has hired outside advisers to explore its options. HudBay shares jumped 10 per cent Monday after Vedanta confirmed it owns about 14.5 million HudBay shares or about 9.5 per cent of the company. The Indian mining giant's interest is a probable precursor to a takeover offer, analysts said. "We believe a premium bid for HudBay is likely," Blackmont Capital analyst George Topping said. Prices could range from $12.90 to $14.10.