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CASH RICH

The company has plenty to spend on any takeover attempt, with around C$800 million in cash.

"He's got the cash to go and do things and it's probably the right time to buy," said David Whetham, who holds HudBay shares in two funds he manages at Scotia Cassels.

"It's implementing that's the tough thing."

HudBay's Toronto-listed stock initially fell nearly 2 percent after Jones unveiled the takeover plans, but then rebounded and was flat at C$7.84 late in the session.

Like other base metals miners, HudBay saw its business turn sour last year as base metals prices sank and debt markets froze up.

The company closed its Balmat zinc mine in New York and its Chisel North zinc mine in Manitoba last year due to weak prices and would need to see a further recovery in zinc to consider reopening either mine, Jones said.

He said the company is working on ways to lower the Fenix costs to make it viable. A new plan for the deposit should be released by the end of the year.

HudBay also said this week it will close its 80-year-old Flin Flon copper smelter by next July due to the operation's high cost and its inability to meet new phased-in greenhouse gas emission regulations.

($1=$1.13 Canadian) (Reporting by Cameron French; Editing by Frank McGurty)