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HudBay Minerals Inc. (TSX:HBM, NYSE:HBM) announced its offer to acquire all of the issued and outstanding common shares of Augusta Resource Corporation that it doesn’t already own.
HudBay Minerals Inc. (TSX:HBM, NYSE:HBM) announced its offer to acquire all of the issued and outstanding common shares of Augusta Resource Corporation that it doesn’t already own.
Under the terms of the Offer,:
Augusta shareholders will be entitled to receive 0.315 of a Hudbay common share for each Augusta common share held, representing approximately C$2.96 per Augusta common share (based on Hudbay’s closing share price on the TSX on February 7, 2014). The Offer represents a premium of 62% to Augusta’s 20-day volume-weighted average price on the TSX for the period ending February 7, 2014, and a premium of 18% to Augusta’s closing share price on the TSX on February 7, 2014 in addition to Augusta’s 26% share price increase during the two trading days preceding the Offer. The Offer values Augusta at an enterprise value of approximately C$540 million on a fully diluted in-the-money basis.
Transaction Highlights
Addition of Augusta’s Rosemont project to Hudbay’s portfolio of low-cost, long-life assets will enhance Hudbay’s position as a leading intermediate base metals mining company with world-class copper production growth.
Acquisition of the Rosemont project is an ideal fit with Hudbay’s disciplined growth strategy of acquiring high quality development-stage assets in mining friendly jurisdictions in the Americas.
Hudbay has the technical and operational expertise and financial capacity to efficiently develop and operate the Rosemont project to the benefit of all stakeholders.