Hudbay makes offer to buy Augusta Resource Corporation

The Canadian Press 0

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.

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