TORONTO (Reuters) - HudBay Minerals
HudBay, which like Lundin has been hit hard by tight credit markets and sliding commodity prices, will pay 0.3919 of a share for each Lundin common share. At C$2.08 a share, the offer is a steep premium on Lundin's price of C$1.12, before the stocks were halted on Friday on the Toronto Stock Exchange.
The deal will create Canada' No. 2 base metals miner by market capitalization, trailing only Teck Cominco
The companies' combined assets produced 187,115 tonnes of copper, 278,289 tonnes of zinc, 44,560 tonnes of lead, and 3,270 tonnes of nickel in 2007, they said.
Following the deal, HudBay's cash on hand will be about C$900 million, with total debt of about $240 million.
Lundin's board has approved the transaction, which includes a break fee of C$24.25 million.
($1=$1.28 Canadian)
(Reporting by Cameron French; editing by Rob Wilson)
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