10:55 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 rose over 3% in US trading, gained nearly 3% on last look in Canada on Friday.

Meanwhile, National Bank said Friday that it has moved coverage on Hudbay Minerals ( HBM ) to "Outperform" (was restricted) and a price target of $15.50 (was restricted).

"HBM remains one of the more leveraged names to copper prices helping to support improved underlying financial results," the analysts said. "Strong operational results to start the year, an improving near-term growth outlook, upcoming catalysts at Copper World and a discounted valuation of 6.3x EV/2025 CF (compared to peers at 9.6x) all support our Outperform rating."

Price: 13.11, Change: +0.32, Percent Change: +2.50