04:37 PM EDT, 05/21/2024 (MT Newswires) -- Hudbay Minerals Inc. ( HBM ) shares were last seen down 7.9% in after-hours New York trading after the company after close on Tuesday said it is raising US$300.2 Million in a bought-deal share offering.

The company said it is selling an underwriting syndicate 31.6-million shares priced at US$9.50 in the financing.

Hudbay also granted the underwriters an over-allotment option of up to an additional 15% if demand warrants.

The company said it will use proceeds to fund near-term growth initiatives, including acceleration of mine pre-stripping activities and mill optimization initiatives at Copper Mountain and strengthen its balance sheet flexibility through debt repayments as part of its "3P" plan for a sanctioning decision on its Copper World project, while evaluating mill throughput enhancement opportunities at Constancia and New Britannia, and for general corporate purposes.

Hudbay shares were last seen down US$0.82 to US$9.54 after hours. They closed up C$0.17 to C$14.15 on the Toronto Stock Exchange.