Hudbay's revenues are driven primarily by copper, zinc and gold (Photo: HudBay Minerals Inc.)

Hudbay's revenues are driven primarily by copper, zinc and gold (Photo: HudBay Minerals Inc.)

Companies in the resource business take note; bring the right deal to the table and BMO and GMP will find you the money.  Hudbay Minerals (HBM:TSX) announced today that they have secured a $150 million bought deal financing being led by GMP and BMO.  The financing was announced at $8.25 per share (only a small discount to the previous days close of $8.81 per share).  Obviously they have been able to convince the smart underwriter's that they are onto something.  That's the same team of underwriters that closed a $175 million bought deal for Platinum Group Metals (PTM:TSX) South African platinum mine last month (not the most attractive of assets these days given the state of social unrest in South Africa).

Pretty impressive given the state of the equity markets, and this means BMO and GMP are connected with big investors that want into quality resource businesses today.Of importance in the release is the half sentence that reads: "providing the company the flexibility to pursue opportunities to advance its growth strategy."  Meaning, they are meaningfully looking at acquisition targets.

At the end of September, the company was sitting on nearly $800 million in cash and made $0.07 per share in operating cash flow in the quarter.  With many of the senior's selling assets, Hudbay could look to acquire any one of a number of assets on the butcher's table.

That being said the company does have a large capital program this year with a budget of $1 billion.

*Note: GMP also closed a $42.6 million financing with Klondex Mines today.

Read: Hudbay Announces $150 Million Bought Deal Financing