Photo by: Augusta Resource Corp
TORONTO (miningweekly.com) – Canadian base metals miner Hudbay Minerals on Monday announced that it would amalgamate its newly acquired project development company Augusta Resource Corp with one of its indirect, wholly owned subsidiaries.
Following a month-long hostile pursuit of Augusta, the two companies in July agreed to friendly terms for a sweetened all-scrip takeover offer, valued at C$555-million, which saw Hudbay, which already owned a 16% stake in Augusta, gain control of the prospective Rosemont copper project, near Tucson, in Arizona.
Hudbay on Monday pointed out that Augusta shareholders would receive the same payment for their shares under the original offer, which entailed 0.315 of a Hudbay common share and 0.17 of a purchase warrant.
Despite not saying how many Augusta shares were still outstanding, Hudbay explained that it would use its majority shareholding in Augusta to effect the changes at a special meeting to be held on September 19, with consideration for ‘minority approval’ according to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.