Augusta Agrees to Increased Hudbay Acquisition Offer
Augusta’s primary asset is its Rosemont copper-molybdenum project 50 km southeast of Tucson, Arizona, USA.
Augusta Executive Chairman Richard Warke had characterized Hudbay’s initial offer as “grossly inadequate.” However, the project has had to deal with permitting delays, and the potential for additional delays growing out of the sighting of an ocelot in or near the Rosemont project area in late May (E&MJ, June 2014, p. 10) has taken some of the gloss off the property.
Augusta’s board of directors unanimously recommended that Augusta shareholders accept Hudbay’s revised offer. Warke said, “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...Our agreement with Hudbay provides Augusta shareholders with an attractive premium for their shares and a stake in a growing intermediate base metals mining company with a portfolio of producing mines and development projects, including the worldclass Rosemont project.”