TORONTO – It’s been a long courtship, but Hudbay Minerals has finally reached the point where it can take up the remaining 4% of Augusta Resource Corp. shares. The original offer was made in February 2014, but Augusta fought the takeover until late June, when Hudbay sweetened its offer. Augusta will become a wholly owned subsidiary of Hudbay.
Holders of Augusta’s outstanding common shares (except Hudbay and its subsidiaries) will receive the same consideration as was paid by Hudbay in July 2014. For each Augusta share, the holder will received 0.315 of a Hudbay common share plus 0.17 of a warrant to acquire a Hudbay share. The deal values each Augusta common share at $3.56.
Augusta’s principle asset is its Rosemont copper-molybdenum mine under development for 2017 start-up in Arizona. It has the potential to produce 243 million lb of copper and 5.4 million lb of molybdenum annually.
Hudbay cautioned that the amalgamation is conditional upon, among other things, approval by at least two-thirds of the votes cast by Augusta shareholders next Sept. 19 in Toronto.
Please visit HudbayMinerals.com for more information.