Augusta Generates Strong Interest with Strategic Review

Resource Investing News

Augusta Resource Corp. (TSX:AZC,NYSEMKT:AZC) announced that its ongoing strategic review process has generated strong interest and that it will be holding a meeting of shareholders on May 9, 2014. The meeting will reaffirm the continuation of its existing shareholder-approved rights plan.

Augusta Resource Corp. (TSX:AZC,NYSEMKT:AZC) announced that its ongoing strategic review process has generated strong interest and that it will be holding a meeting of shareholders on May 9, 2014. The meeting will reaffirm the continuation of its existing shareholder-approved rights plan.

According to the company’s press release:

The strategic review process initiated by Augusta in response to the unsolicited offer from HudBay Minerals Inc. (‘HudBay’) has generated strong interest and remains very active.  Nine interested parties, including a number of significant industry players, have signed confidentiality agreements and have been conducting an extensive review of the materials in Augusta’s electronic data room.  The Company will commence the process of site visits to its Rosemont Copper Project next week and expects that the site visits will take place largely over the next three to four week period.

Gil Clausen, Augusta’s president and CEO, stated:

As we anticipated, our strategic review process has proven to be very robust and we are pleased with the quantity and quality of the interested parties.  There is no doubt that potential buyers recognize that our near-construction Rosemont Copper Project is a unique, world-class asset that has true scarcity value. With the conclusion of the permitting process which is on track for the second quarter this year, we are on the verge of a significant value-creating milestone. The Board is fully committed to maximizing value for our shareholders by carefully considering all available alternatives to HudBay’s low-ball bid.

Click here to view the full press release. 

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