08:49 AM EDT, 05/24/2024 (MT Newswires) -- Hudbay Minerals ( HBM ) said on Friday that it raised US$402.5 million ($551.9 million) through its upsized bought-deal equity offering.

The company issued about 42.4 million common shares, including about 5.5 million shares under the exercise of the over-allotment option, at US$9.50 apiece. The underwriters exercised the full over-allotment option.

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

The company's shares, which fell 1.3% in Canada yesterday, gained 2.3% in premarket U.S. trading on Friday.