Boston, MA, 03/17/2014 – HudBay Minerals Inc Ord Shs (NYSE:HBM) announced that it has broadened its offer to acquire the outstanding shares of Augusta Resource Corp completely. It also relinquished the offer’s minimum tender clause.
Extension Of The Offer
HudBay Minerals Inc Ord Shs (NYSE:HBM) has announced that it will buy all the outstanding shares of Augusta that it does not already own by April 2, 2014 until 5:00 p.m. (Toronto time). Shareholders of Augusta will be liable to receive 0.315 of one HudBay share for every Augusta common share they hold. This represents a 62% premium according to the 20 day volume weighted average share prices of HudBay and Augusta for the tenure ending Feb 7, 2014 which was the last day of trading before HudBay announced the offer.
No Minimum Tender Clause
HudBay Minerals Inc Ord Shs (NYSE:HBM) has also waived off the minimum tender clause, whereby all the shareholders of Augusta get the chance to accept the offer. This would not have been possible otherwise as Augusta claims, directors, executives and a small group of undisclosed shareholders sought to refuse the offer to the disadvantage of other shareholders by not tendering their shares and averting the minimum tender clause from being achieved.
HudBay Minerals Inc Ord Shs (NYSE:HBM) currently owns 23,058,585 common shares of Augusta. This represents around 16% of the issued and outstanding shares of the company. HudBay’s President and chief Executive officer, David Garofalo, said that the company believes the offer to be most compelling choice for the shareholders of Augusta. He strongly encouraged them to tender their shares. He further said, contradicting Augusta’s claims, that there is no reasonable hope that Augusta will be able to start the construction of the Rosemont project in mid 2014. He also said that HudBay Minerals Inc Ord Shs (NYSE:HBM)’s near term financial limitations render it unlikely that it will be able to complete the needed engineering by that time. Augusta will be unable to fetch funds to begin construction until all approvals and legal disputes to the development of the projects have been catered to.