TORONTO (miningweekly.com) – Canadian base metals miner Hudbay Minerals on Tuesday again extended its hostile bid to acquire project developer Augusta Resource Corp until June 9.
Hudbay, which had applied to the British Columbia Securities Commission (BCSC) to block the Augusta shareholder rights plan, in March waived a condition of the offer that two-thirds of Augusta’s shares needed to be tendered for the deal to close.
The extension followed a recent ruling by the BCSC that it would cease trade Augusta’s shareholder rights plan, or ‘poison pill’, on July 15, but only if Hudbay extended its offer to July 16 and if it extended the offer for another ten days if any shares were taken up.
The BCSC ruling gives Augusta more time to look for alternative bidders. The company recently revealed that it had signed confidentiality agreements with ten potential suitors under its strategic review process.
Hudbay said that it was evaluating the implications of ongoing developments regarding Augusta's applications for permits required for the Rosemont project, located near Tucson, Arizona.
On Friday, the US Forest Service (USFS) issued a news release disclosing that it had asked the US Fish and Wildlife Service to restart the formal consultation process on the Rosemont project. The USFS has stated that the record of decision for the Rosemont project would not be signed until the consultation process was complete and a new biological opinion had been issued.
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.