HudBay Minerals Inc. has agreed to increase the consideration that will be received by Augusta Resource Corp. shareholders under the company’s offer to purchase the remaining shares of Augusta not already owned by Hudbay. Under the revised offer, in addition to 0.315 of a Hudbay common share as provided in Hudbay's original offer, Augusta shareholders will also receive 0.17 of a warrant to acquire a common share of Hudbay for each Augusta common share, representing consideration with a value of approximately C$3.56 per Augusta common share. The revised offer represents a total equity value of C$555 million based on 100% of the fully diluted, in-the-money common shares of Augusta (including those already owned by Hudbay).
"We are pleased to have reached agreement with the board and management of Augusta as we strongly believe in the merits of this transaction and its benefits to both companies' shareholders,” said David Garofalo, president and CEO of Hudbay. “We look forward to working with the board and management of Augusta to bring this transaction to a conclusion and to advancing the Rosemont Project within Hudbay."
"After a thorough process to consider all of our alternatives, we are pleased to have agreed on a mutually beneficial transaction representing a successful conclusion to our value maximizing process," said Richard Warke, Augusta's executive chairman.