HudBay Minerals Inc. announced on Friday that it has extended its offer to acquire all of the outstanding shares of Augusta Resource Corporation until May 27, and raised questions about Rosemont Copper's ability to get a Section 404 Clean Water Permit from the Corps of Engineers. [Right, land management map around Rosemont Copper mine area]The Hudbay news release said,
Hudbay continues to monitor developments with respect to Augusta's applications for permits required for the Rosemont project. Hudbay is assessing, among other things, the potential implications of a letter dated May 13, 2014 that the U.S. Army Corps of Engineers (the "USACE") is reported to have sent to Augusta. The USACE letter advises Augusta that, in the context of its Clean Water Act section 404 permit application, Augusta's proposed compensatory mitigation is inadequate and USACE staff is changing its focus from compensatory mitigation to preparing a final permit decision.Industry observers tell us that Hudbay is trying to put pressure on Augusta shareholders to sell or risk the company not getting the necessary permit or being delayed so long the company runs out of cash.
Where is the white knight? The white knight with common synergies? Boy they sure is a roaring silence out there.
ReplyDeleteIsnt it funny that the permit all of a sudden just has to be approved. Another bureaucratic hoop to jump through to make the unhappy feds happy? NOT!
Maybe the "white knight" is biding his time. If the damsel is still alive in the dungeon, there is no need to rush in to save her when it's easier (and cheaper) to wait until her keepers are losing the battle with the fire-breathing dragon.
ReplyDeleteThat's how the term "fire sale" came about.