TORONTO (miningweekly.com) – TSX-listed HudBay Minerals has agreed to buy shares and warrants in Augusta Resource Corp for C$29,99-million, the firms announced this week.

Augusta will put the funds raised towards development at its flagship Rosemont project, in Arizona.

HudBay will subscribe for 10,9-million units, each comprising one share and half of a share purchase warrant, for C$2,75 apiece.

The company will own about 11% of Augusta's issued and outstanding shares, or some 13% on a fully diluted basis.

HudBay will also have the right to participate in other financings by Augusta in the next two years to maintain its current ownership levels.

According to a January 2009 feasibility study, the Rosemont mine will produce an average of 221-million pounds of copper a year, plus 4,7-million pounds of molybdenum, 2,4-million ounces of silver and up to 15 000 oz/y of gold, for more than 20 years.

Shares in Augusta Resource jumped 9,6% on Tuesday, to C$2,40 apiece by 15:59 in Toronto.

HudBay, which operates mines and processing facilities in Canada's Manitoba province, fell 3,4%, to C$13,85 a share.

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