HudBay extends hostile takeover bid for Augusta to June 20; no changes to offer

TORONTO – HudBay Minerals Inc. (TSX:HBM) has extended its hostile takeover offer for Augusta Resource Corp. (TSX:AZC) by another 11 days until June 20, without making new changes to the terms of its proposal.

It’s the latest extension by HudBay since the B.C. Securities Commission decided to allow Augusta’s shareholder rights plan to remain in place unless HudBay extends its offer to July 16.

If HudBay extends its offer to July 16, the rights plan will be blocked on July 15.

HudBay, which owns about a 16 per cent stake in the mining company, has offered 0.315 of a HudBay share for each Augusta share.

Based on HudBay’s stock price at the end of trading Monday, that values each Augusta share at about $3.08. Augusta shares closed at $2.94 on the Toronto Stock Exchange on Monday, up from $2.51 prior to the initial the takeover offer in February.