TORONTO (miningweekly.com) – The strategic review process that Augusta Resources started in response to base metals miner Hudbay Minerals' C$540-million unsolicited takeover offer, has attracted nine interested parties, including a number of significant industry players, the copper project developer revealed on Friday.

Toronto-based Augusta said that its review process had generated “strong” interest and remained “very active”. The nine interested parties were perusing Augusta's data room.

Augusta lambasted Hudbay's “unprecedented” tactic of dropping its minimum tender condition part way through its initial bid period, saying it was a "highly coercive attempt" by a shareholder with more than 15% of Augusta shares to try to secure a minority blocking position, “in order to thwart strategic alternatives” that might be available for the benefit of all other shareholders.

Augusta stressed that its rights plan, or ‘poison pill’ was put in place in April last year, at a time when Hudbay was aggressively buying Augusta shares, to prevent this sort of “predatory tactic” from being used.

However, Hudbay on Friday said in a Securities and Exchange Commission filing that it would apply for a cease-trade order if the rights plan had not been waived, invalidated or cease-traded.

As long as the rights plan remained in effect, Hudbay could take up any shares without triggering the rights plan, which broadly entailed that new shares would be issued if a shareholder exceeded a 15% interest.

"As we anticipated, our strategic review process has proven to be very robust and we are pleased with the quantity and quality of the interested parties. There is no doubt that potential buyers recognise that our near-construction Rosemont project is a unique, world-class asset that has true scarcity value.

“With the conclusion of the permitting process, which is on track for the second quarter this year, we are on the verge of a significant value-creating milestone. The board is fully committed to maximising value for our shareholders by carefully considering all available alternatives to Hudbay's low-ball bid,” Augusta president and CEO Gil Clausen said.

Augusta would from next week start a process of site visits to its flagship Rosemont copper project, in Arizona, which would continue over the next three to four weeks.

Meanwhile, Augusta would hold its annual and special meeting of shareholders on May 9, when shareholders would be asked to determine whether to continue the shareholder rights plan or have it terminated.

The board had decided that if shareholders authorised the rights plan to continue at the meeting, it would be voted on on a yearly basis thereafter, instead of the current triennial basis.

“Our board takes seriously our fiduciary obligation to protect our shareholders against the predatory and coercive tactics of Hudbay. We respect the rights and interests of Augusta's shareholders and are putting the power directly in their hands. We are confident that they will strongly support our board for putting this critical decision to them,” Augusta executive chairperson Richard Warke said.

Canada-based Hudbay in February said it would offer Augusta shareholders 0.315 of a Hudbay share for each Augusta share held, representing about C$2.96 per Augusta share, or a 62% premium to Augusta’s 20-day volume-weighted average share price on the TSX on February 7, or an 18% increase over the stock’s closing price on that date.

Augusta’s TSX-listed stock on Friday rose 2.69% to C$3.44 apiece, and that of Hudbay rose 1.2% to C$8.45 a share.