VANCOUVER, Aug. 24, 2017 /CNW/ - Mason Resources Corp.
(TSX:MNR – "Mason Resources" or the "Company")
reports that Hudbay Minerals Inc. (TSX:HBM; NYSE:HBM –
"Hudbay") announced the August 23,
2017 acquisition of 10,755,170 common shares of Mason
Resources at a price of C$0.26 per
common share. The purchased shares represent all of the
shares of Mason Resources acquired by Sandstorm Gold Ltd.
("Sandstorm") pursuant to the May 9,
2017 spin-out of the Ann Mason copper-molybdenum project in
Nevada and the Lordsburg copper-gold property in New Mexico into Mason Resources through a plan
of arrangement with Entrée Resources Ltd. (formerly Entrée Gold
Inc.).
As at August 23, 2017, Hudbay
beneficially owns and controls 10,854,170 shares of Mason
Resources, representing approximately 13.9% of the 78,044,286
outstanding common shares of Mason Resources (12.5% on a fully
diluted basis).
On August 14, 2017, Orion Mine
Finance Management I Limited, through Mantos Copper (Bermuda) Limited ("Mantos"), acquired
beneficial ownership of an aggregate of 13,664,757 common shares of
Mason Resources from Rio Tinto International Holdings Limited and
Turquoise Hill Resources Ltd. (17.5% of the Company's issued and
outstanding shares). Mantos and Hudbay are now the Company's two
largest shareholders.
Stephen Scott, President and CEO
of Mason Resources stated, "We are very pleased to have Hudbay
Minerals as a significant new shareholder in Mason Resources.
We look forward to working with our two new major shareholders,
Hudbay and Mantos Copper, both of whom are well respected copper
producers with extensive experience in permitting, building, and
operating open pit mines. We look forward to meeting with our
new investors in the coming weeks to better understand their
objectives for their investments in Mason Resources."
Hudbay's news release states that the acquisition of the Mason
Resources shares is being made for investment purposes, and that
Hudbay may in the future increase or decrease its ownership of
Mason Resources shares from time to time depending upon the
business and prospects of Mason Resources, future market conditions
and Hudbay's investment objectives.
Hudbay will file an early warning report (the "Early Warning
Report") as required by National Instrument 62-103 – The
Early Warning System and Related Take-Over Bids and Insider
Reporting Issues, regarding the acquisition of common shares of
Mason Resources. A copy of the Early Warning Report will be
available under the Company's profile on SEDAR at
www.sedar.com.
On July 19, 2017, the Company
adopted a Shareholder Rights Plan (the "Rights Plan") to
ensure, to the extent possible, that all shareholders of the
Company are treated fairly and equally in connection with any
take-over bid or other acquisition of control of the Company. The
Rights Plan was not adopted in response to any specific take-over
bid or other proposal to acquire control of Mason and Mason is not
aware of any such pending or contemplated proposals. A copy of the
Rights Plan agreement is available under the Company's profile on
SEDAR at www.sedar.com.
ABOUT MASON RESOURCES CORP.
Mason Resources Corp. is a well-funded Canadian company focused
on copper exploration and development in the U.S.A. The
Company's key asset is its 100% owned Ann Mason Project – an
extensive, prospective land package located in the Yerington District of Nevada. The Ann Mason Project hosts two
copper-molybdenum porphyry deposits, Ann Mason and Blue Hill, as
well as numerous earlier-stage or untested priority targets.
The Ann Mason deposit is currently at a PEA level and is among the
largest undeveloped copper porphyry resources in Canada/U.S.A.
The excellent infrastructure, year-round access, strong community
support and clear permitting process are all factors that
contribute to making Yerington,
Nevada one of the best mining jurisdictions in the world.
Mason also holds a 100% interest in the Lordsburg property, an exciting earlier-stage
copper-gold porphyry project, located within an historic mining
district in New Mexico.
Mason Resources' strong financial position and high-quality
asset portfolio provide it with a solid foundation and flexibility
for growth, by advancing development of Ann Mason towards
Pre-Feasibility, introducing one or more strategic development
partners, exploring high priority targets or considering strategic
acquisitions. Major shareholders in Mason Resources include Mantos
Copper (Bermuda) Limited and
Hudbay Minerals Inc., owning 17.5% and 13.9%, respectively, of the
issued and outstanding shares of Mason Resources. More
information on Mason Resources can be found at
www.MasonResources.com.
This news release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the
meaning of applicable Canadian securities laws.
While the Company has based these forward-looking statements
on its expectations about future events as at the date that such
statements were prepared, the statements are not a guarantee of the
Company's future performance and are based on numerous assumptions
regarding present and future business strategies, local and global
economic conditions and the environment in which Mason Resources
will operate in the future, including the price of copper, gold,
silver and molybdenum. Uncertainties and factors which could
cause actual results to differ materially from future results
expressed or implied by forward-looking statements and information
include, amongst others, unanticipated costs, expenses or
liabilities; discrepancies between actual and anticipated
production, mineral resources and metallurgical recoveries; the
size, grade and continuity of deposits not being interpreted
correctly from exploration results; the results of preliminary test
work not being indicative of the results of future test work;
fluctuations in commodity prices and demand; changing foreign
exchange rates; actions by government authorities; the availability
of funding on reasonable terms; the impact of changes in
interpretation to or changes in enforcement of, laws, regulations
and government practices, including laws, regulations and
government practices with respect to mining, foreign investment,
royalties and taxation; the terms and timing of obtaining necessary
environmental and other government approvals, consents and permits;
the availability and cost of necessary items such as power, water,
skilled labour, transportation and appropriate smelting and
refining arrangements; and misjudgements in the course of preparing
forward-looking statements. In addition, there are also known and
unknown risk factors which may cause the actual results,
performances or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements and
information. Such factors include, among others, risks related to
international operations, including legal and political risk; risks
associated with changes in the attitudes of governments to foreign
investment; changes in project parameters as plans continue to be
refined; inability to upgrade Inferred mineral resources to
Indicated or Measured mineral resources; inability to convert
mineral resources to mineral reserves; conclusions of economic
evaluations; future prices of copper, gold, silver and molybdenum;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining government approvals, permits or licences or
financing or in the completion of development or construction
activities; environmental risks; title disputes; limitations on
insurance coverage; as well as those factors discussed in the
Company's most recently filed Management's Discussion &
Analysis available at www.sedar.com. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company is
under no obligation to update or alter any forward-looking
statements except as required under applicable securities
laws.
SOURCE Mason Resources