VMS Ventures has announced that in keeping with the joint venture agreement with Hudbay it has successfully negotiated and executed a definitive and binding ore sales and purchase agreement with Hudbay regarding VMS’s 30 percent share of production from the Reed Mine near Snow Lake.  Revenue earned by VMS from its share of Reed ore is contingent upon actual mill recoveries achieved at Hudbay’s concentrator facility in Flin Flon and on the actual mining, milling and other operating costs associated with producing and selling both copper and zinc concentrates from the Reed ore.  VMS will start receiving cash flow from Reed once its share of capital costs incurred in mine development are repaid to Hudbay.

VMS CEO Rick Mark says this agreement represents a major milestone in the development and now commercial operations of the Reed Mine and they are pleased to continue their strong relationship with Hudbay into the operational phase of the mine.