Thursday, July 17, 2014

HudBay Minerals acquires 92% of Augusta Resources stock; management changes coming

HudBay Minerals announced today that stockholders tendered 92% of Augusta Resources stock to the company. August is the parent of Rosemont Copper which is permitting a large open pit copper mine in the Santa Rita Mountains in southern Arizona, that could produce 5% of US copper for 40 years. [Right, proposed mine site.  Credit, Rosemont Copper]

HudBay Minerals Inc. and Augusta Resource Corporation announced today that Hudbay has taken up 116,233,761 common shares ("Augusta Shares") of Augusta that were validly deposited under Hudbay's offer to acquire all of the outstanding Augusta Shares not already owned by Hudbay or its affiliates for consideration per Augusta Share of 0.315 of a common share of Hudbay and 0.17 of a warrant to acquire a common share of Hudbay (the "Offer"). The Augusta Shares taken up under the Offer, together with those already owned by Hudbay, represent approximately 92% of the issued and outstanding Augusta Shares.
Hudbay has extended the Offer until 5:00 p.m. (Toronto time) on July 29, 2014 (the "Expiry Time") to enable Augusta shareholders who have not yet tendered their Augusta Shares to accept the Offer.

As I predicted earlier this week, HudBay plans on putting their own people in key positions in Augusta Resources (and Rosemont Copper as well?):

 It is anticipated that members of Hudbay's current management team will assume management positions with Augusta and replace Augusta's current senior management team and certain members of the Augusta Board of Directors will be replaced by nominees of Hudbay. In particular, David S. Bryson, Alan T. C. Hair, Patrick Donnelly and Patrick Merrin will be appointed to the Augusta Board of Directors, joining current directors Lenard F. Boggio, Timothy Baker and W. Durand Eppler. Gilmour Clausen, Christopher M. H. Jennings, Robert P. Pirooz, Robert P. Wares and Richard W. Warke will resign from the Augusta Board of Directors.

The two companies also announced a loan of C$40 million from HudBay "intended to provide short-term working capital amounts to Augusta."

No comments:

Post a Comment