Monday, June 23, 2014

Breaking: Augusta Resources flips Rosemont Copper to HudBay

HudBay Minerals had made previous offers rejected by Augusta.  They offered more.  Bloomberg.com reports.

HudBay Minerals Inc. (HBM) reached an agreement to buy the rest of Augusta Resource Corp. (AZC) for about C$436 million ($406 million) after sweetening a hostile offer for the developer of the Rosemont copper project in the U.S.

Augusta Board was pleased with the deal.  Of course.

“After a thorough process to consider all of our alternatives, we are pleased to have agreed on a mutually beneficial transaction representing a successful conclusion to our value maximizing process,” Augusta Chairman Richard Warke said in the statement.
Augusta directors, officers and shareholders that control about 30 percent of Augusta’s fully diluted shares have agreed to support the revised offer from HudBay, the companies said today.
The acquisition will allow Toronto-based HudBay to develop Augusta’s Rosemont project as its next mine after recently starting up two Canadian operations, with a project in Peru close to completion. The mine, southeast of Tuscon, Arizona, could account for as much as 10 percent of U.S. copper production, according to Augusta.

For those who would protect the Santa Ritas: same fight, different opponent.

h/t Mark Mandel for the heads up.

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