UPDATE 1-HudBay could take on partner for Fenix project

* Joint venture, offtake deal are options for financing

* To make construction decision on project by mid-2010

* Stock rises 9 percent on TSX

* (In U.S. dollars, unless noted)

TORONTO, Nov 4 (Reuters) - HudBay Minerals (HBM.TO: Quote, Profile, Research) will consider taking on a joint venture partner to help finance construction of its Fenix nickel project in Guatemala, which could get the go-ahead by the middle of next year, the company's CEO said on Wednesday.

Speaking on a conference call to discuss the company's third-quarter results, Chief Executive Peter Jones said HudBay is currently working on a plan to develop a dedicated electricity source for the project in hopes of lowering its expected $1 billion price tag.

HudBay will update the market on the project early next year, and could make a decision on whether to proceed with construction around mid-2010.

"As we move forward we will ... look at various financing alternatives, including potential joint venture partners, offtake agreements and other strategic options that could make Fenix more attractive for HudBay," Jones said.

An offtake agreement is a long-term contract to sell processed ore to a specific customer.