TORONTO – Mining company Hudbay Minerals Inc. (TSX:HBM) says it’s going to try to acquire all the common shares of Vancouver-based Augusta Resources Corporation that it doesn’t already owned.
A Hudbay news release says Augusta shareholders would receive 0.315 of a Hudbay common share for each Augusta common share held, representing approximately C$2.96 per Augusta common share.
The Toronto company says the offer values Augusta at roughly $540 million on a fully diluted in-the-money basis.
Hudbay says the addition of Augusta’s Rosemont project will enhance Hudbay’s position as a leading intermediate base metals mining company.
Hudbay first invested in Augusta in 2010 and currently owns 23,058,585 shares .
The company says it thinks the deal benefits Augusta shareholders because they’ll get a stake in Hudbay.
Augusta shareholders have until Mar. 19 to accept.