TORONTO (miningweekly.com) – The Ontario Securities Commission has set aside a decision by the TSX and ordered Canadian base-metals miner HudBay Minerals to hold a shareholders' vote on its plans to buy Lundin Mining.

Lundin, however, plunged 26% on the news.

HudBay is prohibited from issuing any shares in connection with the transaction until it has obtained approval by a simple majority of the votes cast by HudBay shareholders, the OSC said in an order posted on its website.

Hudbay and Lundin are both reviewing the decision, the firms said in separate statements on Friday.

According to an agreement between the two firms, Lundin shareholders will receive 0,3919 HudBay shares for every Lundin share and Lundin will become a wholly-owned subsidiary of HudBay.

Lundin shareholders are scheduled to vote on the deal on Monday, and the transaction was expected to have closed on January 28, before OSC announced on Friday that it would block the deal until HudBay holds a shareholder vote.

Monday's vote will still go ahead, Lundin said.

HudBay rose C$0,80 a share, to C$4,32 apiece by 9:39 in Toronto, while shares in Lundin fell C$0,32, to C$0,87 a share.

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