Reuters reported that Canadian miner HudBay Minerals Inc will sell its Fenix ferronickel project in Guatemala to Russia's Solway Group for USD 170 million in cash.

The Fenix project does not fit HudBay's strategy of focusing on volcanogenic massive sulfide and porphyry deposits.

HudBay said that it expects to record a non-cash charge of about USD 212.7 million related to its investment in Fenix, in its financial results for the three months ended June 30th 2011.

Solway will pay the company USD 140 million in cash at the closing of the deal, and USD 30 million after certain conditions are satisfied.

HudBay expects the transaction to close in the third quarter of 2011.

(Sourced from www.reuters.com)